Q1 2009 Costs to Buy a Business

How Much Is My Quincy Business Worth?

Every quarter, BizBuySell.com published business valuation data, and we now have their latest Quincy, Massachusetts business valuation data for First Quarter 2009.

Q1 2009 Business Valuations in Quincy, MA

According to statistics issued by BizBuySell.com, Quincy business-for-sale listings in Q1 2009 had a median asking price of $199,000.

That compares to a median ask price of $212,500 in Q1 2008. Given that Quincy, MA median business asking prices appear to be dropping, it suggests that larger Quincy 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 Quincy company for much less. Similarly, some Quincy businesses may be selling for much more.

Another thing to remember is that this is the asking price for a Quincy business. When an 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. So, a business listed for $100,000 might sell for between $85,000 and $90,000.

Number of Quincy Businesses for Sale in the Dataset

The study data comprised 553 listings in the Boston-Cambridge-Quincy, MA-NH metro area. As such, some of the businesses used to derive the median valuation might be outside of Quincy, but they are nearby and so are probably representative of Quincy business valuations.

In Q1 2008, just one year ago, there were 698 Quincy listings in the BizBuySell.com dataset. As a result of the recession, fewer Quincy business owners are selling because they hope to weather the storm and sell after the economy turns around.

Quincy, MA Q1 2009 Revenue Multiples

In the Boston-Cambridge-Quincy, MA-NH metro area, businesses will typically sell for 0.79 times the selling company's revenues. The data indicates that is the mean revenue multiple for Q1 2009 in this area of the country.

In other words, a firm with revenues of $200,000 might list for $158,966. Remember, however, that this is simply 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 $364,077 in Q1 2009.

To give this some context, the Q1 2008 revenue multiple was 0.84 and the median revenue for listed businesses was $350,000.

Q1 2009 Cash Flow Multiples In Quincy, MA

Cash flow multiples are another common way to value a business.

For Q1 2009, the average cash flow multiple for businesses listed in the Boston-Cambridge-Quincy, MA-NH metro area was 2.99.

So, a business with cash flows of $150,000 might have an asking price of $448,519. That's only if the firm complies with the local average. The actual distribution on revenue multiples for a given set of businesses can be quite wide-ranging.

If you are interested in what cash flows are for a business in Quincy, BizBuySell.com determined that the median cash flow for Quincy area businesses was $96,815 in Q1 2009. In Q1 2008, cash flow multiples clocked in at 2.97 and the median cash flow was $100,000.

Things to Consider When Selling a Business in Quincy, MA

In this difficult econonmic environment, sellers must be bankers. That means you should offer seller financing to prospective buyers because you, as a seller, may be their only viable source of financing. This tip for selling a business was provided by Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.

Business Valuations for Quincy, MA 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 additional information.

Historical Data for Quincy, MA Business Valuations

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Boston-Cambridge-Quincy, MA-NH metro area for the last 9 quarters.

Quarter
Median Ask
Q1 2007
$199,900
Q2 2007
$189,000
Q3 2007
$217,250
Q4 2007
$219,000
Q1 2008
$212,500
Q2 2008
$200,000
Q3 2008
$199,000
Q4 2008
$199,000
Q1 2009
$199,000

Here is how median revenue multiples are trending in the Quincy area, based on BizBuySell.com's data.

Quarter
Revenue Multiple
Q1 2007
0.81
Q2 2007
0.77
Q3 2007
0.83
Q4 2007
0.82
Q1 2008
0.84
Q2 2008
0.81
Q3 2008
0.82
Q4 2008
0.80
Q1 2009
0.79

Here is how cash flow multiples are trending in the Quincy area, based on BizBuySell.com's quarterly reports.

Quarter
Median Cash
Flow Multiple
Q1 2007
2.85
Q2 2007
2.74
Q3 2007
2.80
Q4 2007
2.86
Q1 2008
2.97
Q2 2008
2.92
Q3 2008
2.95
Q4 2008
2.95
Q1 2009
2.99

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