Q1 2009 Costs to Buy a Business
How Much Is My Jacksonville Business Worth?
We just received the latest Jacksonville, Florida business valuation data for First Quarter 2009.
Q1 2009 Business Valuations in Jacksonville, FL
Based on data compiled by BizBuySell.com, Jacksonville business-for-sale listings in Q1 2009 had a median asking price of $197,500.
That compares to a median ask price of $200,000 in Q1 2008. Given that Jacksonville, FL median business asking prices appear to be dropping, it suggests that larger Jacksonville businesses in may be holding off on selling until the economy turns around.
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 Jacksonville company for much less. Similarly, some Jacksonville businesses may be selling for much more.
Also, this is the asking price for a Jacksonville business. When a business owner lists a business for sale, they typically set a price that ends up being more than the contracted sale price. A sale-to-ask ratio typically might be between 0.85 and 0.90, but of course it varies considerably. Based on this metric, a business initially priced at $225,000 might sell for between $191,250 and $202,500.
Number of Jacksonville Businesses for Sale in the Dataset
The study data comprised 401 listings in the Jacksonville, FL metro area. As such, some of the businesses used to derive the median valuation might be outside of Jacksonville, but they are in the area and so are probably representative of Jacksonville business valuations.
In Q1 2008, just one year ago, there were 458 Jacksonville listings in the BizBuySell.com dataset. As a result of the recession, fewer Jacksonville business owners are selling because they hope to weather the storm and sell after the economy turns around.
Q1 2009 Revenue Multiples In Jacksonville, FL
In the Jacksonville, FL metro area, businesses will typically sell for 0.92 times the selling company's revenues. That was the mean revenue multiple for Q1 2009 in this part of the country.
In other words, a business that has revenues of $200,000 might list for $183,484. Remember, however, that this is in fact an average for revenue multiples in the area. Some entities 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 $335,305 in Q1 2009.
To put this in perspective, the Q1 2008 revenue multiple was 1.00 and the median revenue for listed businesses was $305,779.
Q1 2009 Cash Flow Multiples In Jacksonville, FL
Cash flow multiples are another common way to value a business.
For Q1 2009, the average cash flow multiple for businesses listed in the Jacksonville, FL metro area was 3.48.
So, a business with cash flows of $150,000 might have an asking price of $521,742. That calculation is dependent on the business selling for the area's average multiple. Most businesses will not conform to industry- or area averages.
In case you were wondering what typical cash flows are for a business in Jacksonville, BizBuySell.com determined that the median cash flow for Jacksonville area businesses was $87,244 in Q1 2009. In Q1 2008, cash flow multiples clocked in at 3.72 and the median cash flow was $80,844.
Things to Consider When Selling a Business in Jacksonville, FL
Selling a business can be a highly emotional process. To many business owners, the business is their baby, the result of years of hard work. However, when selling a business, it's imperative to keep emotions in check. Be objective and rational and you'll get across the finish line in the best possible way. This good selling-a-business tip comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.
Business Valuations for Jacksonville, FL Businesses
If you are contemplating buying a business or selling a business and would like to look at comparables in the area, 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 a nationally-recognized economic report that tracks trends in the business-for-sale marketplace. If you find these trends interesting, take a moment to visit BizBuySell.com Insights Report for more information.
Historical Data for Jacksonville, FL Business Valuations
If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Jacksonville, FL metro area for the last 9 quarters.
Here is how median revenue multiples are trending in the Jacksonville area, based on BizBuySell.com's quarterly reports.
Here is how cash flow multiples are trending in the Jacksonville area, based on BizBuySell.com's quarterly reports.
Flow Multiple
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