Q1 2009 Costs to Buy a Business
How Much Is My Portland Business Worth?
We just received the latest Portland, Oregon business valuation data for First Quarter 2009.
Q1 2009 Business Valuations in Portland, OR
Based on data compiled by BizBuySell.com, Portland business-for-sale listings in Q1 2009 had a median asking price of $295,000.
That compares to a median ask price of $290,000 in Q1 2008. Because the median ask price for businesses for sale in Portland has risen year over year, we can conclude that many smaller firms in Portland are holding off on selling.
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 Portland company for much less. Alternatively, some Portland businesses may be selling for much more.
Another thing to remember is that this is the asking price for a Portland business. When a business owner lists a business for sale, they typically set a price that ends up being more than the ultimate sale price. A sale-to-ask ratio typically might be between 0.85 and 0.90, but of course it varies considerably. If an owner lists a business for $150,000, it might end up selling for between $127,500 and $135,000.
Number of Portland Businesses for Sale in the Dataset
The study data comprised 170 listings in the Portland-Vancouver-Beaverton, OR-WA metro area. As such, some of the businesses used to derive the median valuation might be outside of Portland, but they are close by and so are probably representative of Portland business valuations.
One year ago, in Q1 2008, the BizBuySell.com dataset for Portland spanned 162 listings. In a market where you would think fewer business owners would be selling, it's a bit surprising to see more Portland business-for-sale listings.
Portland, OR Q1 2009 Revenue Multiples
In the Portland-Vancouver-Beaverton, OR-WA metro area, businesses will typically sell for 0.86 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 $172,804. 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.
According to BizBuySell.com, the median revenues for its business-for-sale listings was $400,672 in Q1 2009.
To put this in perspective, the Q1 2008 revenue multiple was 0.82 and the median revenue for listed businesses was $469,000.
Q1 2009 Cash Flow Multiples In Portland, OR
Cash flow multiples are another common way to value a business.
For Q1 2009, the average cash flow multiple for businesses listed in the Portland-Vancouver-Beaverton, OR-WA metro area was 3.41.
So, a firm with cash flows of $150,000 might have an asking price of $511,244. That calculation is dependent on the business selling for the area's average multiple. Most businesses will not conform to industry- or area averages.
If you are interested in what cash flows are for a business in Portland, BizBuySell.com reports that the median cash flow for Portland area businesses was $102,237 in Q1 2009. In Q1 2008, cash flow multiples clocked in at 3.65 and the median cash flow was $95,631.
Tips for Portland, OR Business Sellers
When choosing a business broker, look for a broker that can maintain confidentiality and simultaneously get you the most qualified buyers. In addition, make sure the business broker has a good track record in facilitating negotiations between buyer and seller in a way that arrives at the best possible transaction. This helpful tip comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.
Business Valuations for Portland, OR 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 Portland, OR Business Valuations
If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Portland-Vancouver-Beaverton, OR-WA metro area for the last 9 quarters.
Here is how median revenue multiples are changing in the Portland area, based on BizBuySell.com's economic data.
The table below shows how cash flow multiples are trending in the Portland area, based on BizBuySell.com's quarterly reports.
Flow Multiple
Share this article
Additional Resources for Entrepreneurs