Hes 250 Module 4

1. Define the industry.

Companies in this industry estimate the value of an owner’s interest in a business. Business valuation firms are used to determine how much an entity is willing to pay to buy a business or receive to sell a business. Business valuation can also be used for other legal and business purposes.

1. Who are the major players/companies?

There are no major players in this industry, however there are two companies that the website has pointed out – one is Duff & Phelps Corporation and the other is CBIZ Valuation Group LLC.

1. What are the main activities?

The major activities of this industry are: provision of market valuations, provision of liquidation valuations, provision of insurance valuations, and provisions of residual valuations.

1. What is the industry revenue?

$4.6 billion.

1. Summarize the Industry Outlook.

IBIS is estimating the revenue over the next 5 years will drop by 3.6% to $3.8 billion.  This industry will face heavy competition from accounting firms, business valuation software, and investment banks.  They are now able to do more than they were before.  The industry is will decline annually at 1.9% while the national GDP will grow at a rate of 2.1%.  A couple of reasons why the industry is slowing down is heightened competition restricting profit growth and the number of companies is decreasing.

1. Summarize the competitive landscape (ex. market share, competition, barriers to entry)

This industry will face heavy competition from accounting firms, business valuation software, and investment banks.  They are now able to do more than they were before.  There are not that many barriers to entry in this industry and they are decreasing.  As mentioned earlier, the competition is high and increasing as time goes on.  The concentration is low, but the life cycle stage is declining.  The capital intensity is low, the technology and regulations are changing and growing.