Standards
Research & Data Methodology
Benchmarks can help a buyer or owner ask better questions, but the method behind a number matters as much as the number itself.
Separate measured from modeled
Public search estimates, industry benchmarks, internal transaction observations and modeled scenarios should be labeled so readers can understand what the number represents.
Describe the denominator
Percentages should state the population, period and inclusion criteria where those details materially affect interpretation.
Anonymize transaction research
Future proprietary studies should aggregate or anonymize client information and follow engagement, confidentiality and legal requirements before publication.
Avoid false precision
A small sample should not be presented as a universal industry rule. Ranges and limitations are often more honest than a single precise number.
Preserve reproducibility
Where possible, document calculation definitions so a reader can understand how a metric such as SDE normalization, concentration or working capital was derived.
A useful benchmark explains enough of its method for the reader to know when it does, and does not, apply.