Q1 2009 Costs to Buy a Business
How Much Is My Albany Business Worth?
Every quarter, BizBuySell.com published business valuation data, and we now have their latest Albany, New York small business valuation trend data for First Quarter 2009.
Q1 2009 Business Valuations in Albany, NY
According to statistics issued by BizBuySell.com, Albany business-for-sale listings in Q1 2009 had a median asking price of $444,950.
That compares to a median ask price of $479,000 in Q1 2008. One interpretation of the lower median asking price is that Albany, NY sellers are dropping their asking prices in light of market conditions.
Please understand that this is the median asking price for a business. If you want to buy a business, you may be able to buy a Albany company for much less. However, some Albany businesses may be selling for much more.
Another thing to remember is that this is the asking price for a Albany business. When a company owner lists a business for sale, they typically set a price that ends up being more than the eventual sale price. A sale-to-ask ratio typically might be between 0.85 and 0.90, but of course it depends on deal specifics. An owner who wants $275,000 might actually get between $233,750 and $247,500.
Number of Albany Businesses for Sale in the Dataset
The study data comprised 70 listings in the Albany-Schenectady-Troy, NY metro area. As such, some of the businesses used to derive the median valuation might be outside of Albany, but they are in the area and so are probably representative of Albany business valuations.
One year ago, in Q1 2008, the BizBuySell.com dataset for Albany spanned 62 listings. In a market where you would think fewer business owners would be selling, it's a bit surprising to see more Albany business-for-sale listings.
Q1 2009 Revenue Multiples In Albany, NY
In the Albany-Schenectady-Troy, NY metro area, businesses will typically sell for 1.92 times the selling company's revenues. That was the mean revenue multiple for Q1 2009 in this area of the country.
In other words, a business that has revenues of $200,000 might list for $383,847. Keep in mind that this is just an average for revenue multiples in the area. Some companies will have higher revenue multiples and others will have lower revenue multiples.
According to BizBuySell.com, the median revenues for its business-for-sale listings was $453,000 in Q1 2009.
To put this in perspective, the Q1 2008 revenue multiple was 1.90 and the median revenue for listed businesses was $445,500.
Q1 2009 Cash Flow Multiples In Albany, NY
Cash flow multiples are another popular technique to value a business.
For Q1 2009, the average cash flow multiple for businesses listed in the Albany-Schenectady-Troy, NY metro area was 4.97.
So, a business with cash flows of $150,000 might have an asking price of $745,596. That's only if the firm complies with the local average. In practice, cash flow multiples can vary considerably from one business to another.
If you are interested in what cash flows are for a business in Albany, BizBuySell.com found that the median cash flow for Albany area businesses was $130,500 in Q1 2009. In Q1 2008, cash flow multiples clocked in at 4.30 and the median cash flow was $143,948.
Things to Consider When Selling a Business in Albany, NY
When setting a price for a business, it's worthwhile to invest in a professional valuation. If you define the business selling price without a professional valuation, you may end up leaving money on the table or having an unrealistic price that prevents a deal from ever getting done. This helpful tip on buying a business comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.
Business Valuations for Albany, NY Businesses
If you are contemplating buying a business or selling a business and would like to find out how much a business is worth, we suggest you try the BizBuySell.com Business Valuation Tool. You can modify the dataset that creates business valuation estimates to meet your specific criteria. As a bonus, access to the tool is very affordable -- less than $100.
More Information on BizBuySell.com's Quarterly Reports
The BizBuySell Insight Report is published every quarter. If you find these trends interesting, take a moment to visit BizBuySell.com Insights Report for more information.
Historical Data for Albany, NY Business Valuations
If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Albany-Schenectady-Troy, NY metro area for the last 9 quarters.
Here is how median revenue multiples are trending in the Albany area, based on BizBuySell.com's quarterly reports.
Here is how cash flow multiples are trending in the Albany area, based on BizBuySell.com's quarterly reports.
Flow Multiple
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