Financial Benchmarking for Private Companies

Private company financial benchmarking compares a company's financial ratios with those of private companies in the same industry and revenue range. FairMarketValue (FMV) matches peers by six-digit NAICS code and revenue band, then shows where the company sits on margins, leverage, working capital, and growth, and what closing each gap is worth.

FMV's benchmarking peers come from financial statements of more than 450,000 U.S. private companies. Peers are matched to the subject by six-digit NAICS code and revenue band, and public companies are shown separately rather than mixed into the private peer set.

Public companies are typically many times larger than the private businesses banks and accounting firms serve, with different cost structures and access to capital. A private peer set of similar size gives a realistic view of whether a company's margins and leverage are typical, which is why FMV keeps public comparisons separate.

An FMV benchmarking report has nine sections: scorecard, distribution, decomposition, priced gaps, value drivers, industry conditions, position by scale, revenue productivity, and cost of capital. Each gap to the peer median is stated in dollars.

The peer set behind an FMV benchmarking report is rebuilt every quarter, and the company's own figures update whenever its connected books change.

Yes, as part of the sample SBA 7(a) valuation. Every lender report includes the peer benchmark exhibit, so the sample shows exactly what credit teams receive. Banks can request it on the Banks & Lenders page.

Pricing for an FMV benchmarking report depends on the number of companies covered and how often results are needed. FMV quotes it for each bank portfolio or firm client book.