Q2 2009 Business Valuation Data

Business Valuations for Boston, MA

Here's the latest BizBuySell.com Boston, Massachusetts business valuation statistics for Second Quarter 2009.

Q2 2009 Business Valuations in Boston, MA

Based on statistics prepared by BizBuySell.com, Boston listings for businesses for sale in Q2 2009 had a median asking price of $199,000.

The median ask price for selling businesses was $200,000 in Q2 2008.

Boston, MA Q2 2009 Revenue Multiples

In the Boston-Cambridge-Quincy, MA-NH metro area, businesses will on average sell for 0.79 times the selling company's revenues. That was the mean revenue multiple for Q2 2009 in this area of the country.

According to the latest BizBuySell.com data, the median revenue for its listed businesses was $365,500 in Q2 2009.

In terms of trending year over year, the Q2 2008 revenue multiple was 0.81 and the median revenue for selling businesses was $353,000.

Q2 2009 Cash Flow Multiples In Boston, MA

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

For Q2 2009, the average cash flow multiple for listed businesses in the Boston-Cambridge-Quincy, MA-NH metro area was 2.87.

BizBuySell.com reports that the median cash flow for Boston area businesses was $95,000 in Q2 2009. In Q2 2008, cash flow multiples clocked in at 2.92 and the median cash flow was $98,908.

Number of Boston Businesses for Sale in the Dataset

The study data comprised 554 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 Boston, but they are in the area and so are likely representative of Boston business valuations.

Considerations When Valuing a Business in Boston, MA

Don't forget that business valuations are irrelevant if you can't get buyers interested in making an offer. Calculating a business valuation and coming up with an asking price is just one of many steps you must undertake to successfully sell a business. This helpful advice was provided by Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.

Business Valuations for Boston, 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 more information.

Historical Data for Boston, MA Business Valuations

With respect to local trends in business-for-sale asking prices, here are the median asking prices for companies in the Boston-Cambridge-Quincy, MA-NH metro area for the last 10 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
Q2 2009
$199,000

The chart below shows how median revenue multiples are moving in the Boston 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
Q2 2009
0.79

The table below provides data on how cash flow multiples are trending in the Boston 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
Q2 2009
2.87

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