Q2 2009 Business Valuation Data
Business Valuations for Detroit, MI
BizBuySell.com has published its latest business valuation data, including Detroit, Michigan reports on business valuations for Q2 2009.
Q2 2009 Business Valuations in Detroit, MI
According to the latest data compiled by BizBuySell.com, Detroit listings for businesses for sale in Q2 2009 had a median asking price of $200,000.
The median ask price for selling businesses was $241,000 in Q2 2008.
Q2 2009 Revenue Multiples In Detroit, MI
In the Detroit-Warren-Livonia, MI metro area, businesses will usually sell for 0.84 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 $371,000 in Q2 2009.
To put this in perspective, the Q2 2008 revenue multiple was 0.98 and the median revenue for selling businesses was $332,305.
Q2 2009 Cash Flow Multiples In Detroit, MI
Cash flow multiples are a common way to value a business.
For Q2 2009, the average cash flow multiple for listed businesses in the Detroit-Warren-Livonia, MI metro area was 3.42.
BizBuySell.com reports that the median cash flow for Detroit area businesses was $80,023 in Q2 2009. In Q2 2008, cash flow multiples clocked in at 3.68 and the median cash flow was $80,835.
Number of Detroit Businesses for Sale in the Dataset
The study data comprised 168 listings in the Detroit-Warren-Livonia, MI metro area. Many of the businesses in the dataset are outside of Detroit, but they are in the area and so are likely representative of Detroit business valuations.
Tips for Detroit, MI Business Valuations
Don't hire somebody who is a financial wizard to calculate your business valuation. When valuing a company, having knowledge of the market that exists during the time you're trying to sell is the best way to value a company. A spreadsheet guru may know how to build a killer financial model, but they won't have access to that kind of business comparables data. This advice on how to value a business comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.
Business Valuations for Detroit, MI Businesses
If you are contemplating buying a business or selling a business and would like to value a specific business, 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 Detroit, MI Business Valuations
With respect to local trends in business-for-sale asking prices, here are the median asking prices for companies in the Detroit-Warren-Livonia, MI metro area for the last 10 quarters.
The chart below shows how median revenue multiples are trending in the Detroit area, based on BizBuySell.com's quarterly reports.
The table below provides data on how cash flow multiples are trending in the Detroit area, based on BizBuySell.com's quarterly reports.
Flow Multiple
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