What Is My Post-Production Studio Worth?

Post-production studios — editing houses, VFX shops, color grading suites, and sound mixing facilities — are equipment-intensive businesses where relationships, technical capabilities, and facility quality drive value. In Los Angeles, proximity to studios and a reputation for quality work create lasting competitive advantages.

Typical Valuation Ranges

Most post-production studios sell for 2.5x to 4x SDE. VFX-heavy operations with studio contracts can exceed this range.

Factors that push toward the higher end:

• Long-term contracts with studios or networks
• VFX or specialty capabilities (color science, Dolby Atmos, IMAX)
• Modern, well-maintained facility and equipment
• Revenue above $1.5M with diversified client base
• Proprietary pipeline tools or workflows
• Strong team of editors, colorists, or VFX artists
• Recurring series work providing predictable revenue

Factors that push toward the lower end:

• Aging equipment requiring near-term capital expenditure
• Revenue concentrated in one or two clients
• Lease expiring without favorable renewal terms
• Commodity editing services with no specialty
• Key-person dependency on founder/lead editor
• Project-based revenue without recurring clients

Key Value Drivers

Equipment and facility — the quality, age, and capability of your edit suites, color bays, sound stages, and VFX workstations directly affect value. Buyers discount businesses requiring major equipment upgrades.

Studio relationships and preferred vendor status take years to build. Long-term contracts or master service agreements with studios and networks are highly valuable.

Technical capabilities — specialty services like high-end VFX, HDR/Dolby Vision color grading, immersive audio, and virtual production support command premium rates and are harder to compete against.

Team retention — skilled editors, colorists, and VFX artists are difficult to recruit. A stable team that will stay through a transition significantly reduces buyer risk.

How to Increase Your Value

1. Invest in specialty capabilities. Dolby Atmos, HDR grading, and VFX are higher-margin and harder for competitors to replicate.
2. Secure long-term contracts. Multi-project or series-length agreements provide revenue predictability.
3. Upgrade or maintain equipment. Current technology signals a business that won't require immediate capital investment.
4. Diversify your client base. Spread revenue across studios, streamers, commercial clients, and independent productions.
5. Build your team. Reduce dependency on any single artist or editor by developing depth across your crew.

Browse the valuation multiples guide for industry data, or schedule a free call for a confidential valuation.