Q1 2009 Costs to Buy a Business
How Much Is My Oklahoma City Business Worth?
We just received the latest Oklahoma City, Oklahoma business valuation data for First Quarter 2009.
Q1 2009 Business Valuations in Oklahoma City, OK
Based on data compiled by BizBuySell.com, Oklahoma City business-for-sale listings in Q1 2009 had a median asking price of $248,250.
That compares to a median ask price of $300,000 in Q1 2008. One interpretation of the lower median asking price is that Oklahoma City, OK sellers are dropping their asking prices in light of market conditions.
To be clear, this is the median asking price for a business. If you want to buy a business, you may be able to buy a Oklahoma City company for much less. However, some Oklahoma City businesses may be selling for much more.
Another thing to remember is that this is the asking price for a Oklahoma City business. When an entrepreneur 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 varies considerably. So, a business listed for $100,000 might sell for between $85,000 and $90,000.
Number of Oklahoma City Businesses for Sale in the Dataset
The study data comprised 108 listings in the Oklahoma City, OK metro area. As such, some of the businesses used to derive the median valuation might be outside of Oklahoma City, but they are in the area and so are probably representative of Oklahoma City business valuations.
One year ago, in Q1 2008, the BizBuySell.com dataset for Oklahoma City spanned 91 listings. The downward trend in the number of Oklahoma City business-for-sale listings is indicative of the current down economy.
Oklahoma City, OK Q1 2009 Revenue Multiples
In the Oklahoma City, OK metro area, businesses will typically sell for 0.94 times the selling company's revenues. The data indicates that is the mean revenue multiple for Q1 2009 in this metro area.
In other words, a business that has revenues of $200,000 might list for $188,944. Keep in mind that this is just an average for revenue multiples in Oklahoma City and surrounding communities. Some businesses 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 $360,096 in Q1 2009.
In terms of trending year over year, the Q1 2008 revenue multiple was 1.23 and the median revenue for listed businesses was $362,172.
Q1 2009 Cash Flow Multiples In Oklahoma City, OK
Cash flow multiples are another popular technique to value a business.
For Q1 2009, the average cash flow multiple for businesses listed in the Oklahoma City, OK metro area was 3.42.
So, a business with cash flows of $150,000 might have an asking price of $513,037. That's only if the firm complies with the local average. Most businesses will not conform to industry- or area averages.
If you are interested in what cash flows are for a business in Oklahoma City, BizBuySell.com found that the median cash flow for Oklahoma City area businesses was $98,372 in Q1 2009. In Q1 2008, cash flow multiples clocked in at 3.94 and the median cash flow was $100,000.
Things to Consider When Selling a Business in Oklahoma City, OK
Before you sell a business, you will need to recast your financials to adjust for what the business owner takes out of the business. This includes things like a high salary, car expenses and other owner perks. This useful tip comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.
Business Valuations for Oklahoma City, OK 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 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 Oklahoma City, OK Business Valuations
If you are interested in trends in business-for-sale asking prices, here are the median asking prices for companies in the Oklahoma City, OK metro area for the last 9 quarters.
Here is how median revenue multiples are trending in the Oklahoma City area, based on BizBuySell.com's economic data.
Here is how cash flow multiples are trending in the Oklahoma City area, based on BizBuySell.com's quarterly reports.
Flow Multiple
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