Buying a Business
Cost to Buy a Business in Bridgeport
Considering purchasing a company in Bridgeport, Connecticut? You've come to the right place to get statistics and trend data on Bridgeport, Connecticut business-for-sale transactions.
The good news is the team at BizBuySell.com has made some data available on what it costs to buy a business in Bridgeport.
BizBuySell.com is the largest online marketplace for business-for-sale transactions. When a business broker in a local city has a listing, the broker will typically post it on BizBuySell.com. They also have many FSBO (for sale by owner) business-for-sale listings.
If you are looking to buy a business in Connecticut, peruse the BizBuySell Connecticut listings to see the latest business-for-sale listings for Bridgeport and other Connecticut cities.
Bridgeport, CT Business Valuations
Based on the BizBuySell.com data, the median asking price for an Bridgeport business-for-sale listing in Q4 2008, the quarter when they most recently released their data, was $255,000.
That was based on 156 listings in the Bridgeport-Stamford-Norwalk, CT metro area. As such, some of the businesses used to derive the median valuation might be outside of Bridgeport, but they are in the area and so are likely representative of Bridgeport business valuations.
Note that this is the median asking price for a business. If you are in the market to buy a company, you may be able to buy an Bridgeport business for much less. At the same time, some Bridgeport businesses may cost much more.
Another thing you should know is that this is the asking price for an Bridgeport business. Typically, when a business owner lists a company for sale, they start with an asking price that is higher than the eventual sale price. The sale-price-to-asking-price ratios depend on deal specifics but typically might be between 0.85 and 0.90. In other words, a business listed for $100,000 might sell for between $85,000 and $90,000.
If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses for sale in the Bridgeport-Stamford-Norwalk, CT metro area for the last 8 quarters.
Revenue Multiples In Bridgeport, CT
In the Bridgeport-Stamford-Norwalk, CT metro area, small businesses will typically sell for 0.77 times the selling company's revenues. That was the mean revenue multiple for Q4 2008 in this area of the country.
In other words, a business that has revenues of $200,000 might list for $154,117. Remember, however, that this is just an average for revenue multiples in the area. Some firms will have higher revenue multiples and others will have lower revenue multiples.
Here is how median revenue multiples are moving in the Bridgeport area, based on BizBuySell.com's economic data.
According to BizBuySell.com, the median revenues for its business-for-sale listings was $395,000 in Q4 2008.
Cash Flow Multiples In Bridgeport, CT
Another popular way to value a business is through cash flow multiples.
For Q4 2008, the average cash flow multiple for businesses listed in the Bridgeport-Stamford-Norwalk, CT metro area was 2.92.
So, a business with cash flows of $120,000 might have an asking price of $350,431. That math only works if the business sells for the area's average multiple. Actual cash flow multiples are based on business specifics.
The table below shows how cash flow multiples are trending in the Bridgeport area, based on BizBuySell.com's quarterly reports.
Flow Multiple
If you are interested in what cash flows are for a business in Bridgeport, BizBuySell.com reports that the median cash flow for Bridgeport area businesses was $98,754 in Q4 2008.
Things to Consider When Buying a Business in Bridgeport, CT
The baby boomer generation has made its mark in the business world. Aging boomers are now looking toward retirement, while many younger boomers find they're ready to be their own boss. It's a good idea to look at businesses that are being sold by aging business boomers as they may be motivated sellers. This helpful tip on buying a business comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.
Business Valuations for Bridgeport, CT Businesses
If you have a specific business in mind and want to look at comparables in the area, we recommend the BizBuySell.com Business Valuation Tool. You can refine the dataset that generates business valuations to meet your specific needs, and access to the tool is very affordable -- less than $100.
More Information on BizBuySell.com's Quarterly Reports
The BizBuySell Insight Report is published on a quarterly basis. If you find this data interesting, be sure to visit BizBuySell.com Insights Report for more information.
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