Buying a Business
Cost to Buy a Business in Gastonia
Considering purchasing a company in Gastonia, North Carolina? You're no doubt wondering how much a typical Gastonia, North Carolina business costs to buy.
Fortunately, the folks at BizBuySell.com have made some data available on what it costs to buy a business in Gastonia.
BizBuySell.com is the largest online marketplace for business-for-sale transactions. The vast majority of business brokers in the country put their business listings on BizBuySell.com. In addition, many business owners who are selling on their own, without a broker, will place listings on BizBuySell.com.
If you want to buy a company in North Carolina, peruse the BizBuySell North Carolina listings to get instant access to business-for-sale listings for Gastonia and other North Carolina towns.
Business Valuations in Gastonia, NC
Based on the BizBuySell.com data, the median asking price for an Gastonia business-for-sale listing in Q4 2008, the quarter when they most recently released their data, was $300,000.
That was based on 227 listings in the Charlotte-Gastonia-Concord, NC-SC metro area. As such, some of the businesses used to derive the median valuation might be outside of Gastonia, but they are in the area and so are probably representative of Gastonia business valuations.
Note that this is the median asking price for a business. If you are in the market to buy a company, you may be able to buy an Gastonia business for much less. At the same time, some Gastonia businesses may cost much more.
Another thing you should know is that this is the asking price for an Gastonia business. Typically, when an entrepreneur lists a business for sale, they start with an asking price that is higher than the eventual sale price. The sale-price-to-asking-price ratio varies considerably but typically might be between 0.85 and 0.90. For example, a business listed for $250,000 would go for between $212,500 and $225,000.
If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses for sale in the Charlotte-Gastonia-Concord, NC-SC metro area for the last 8 quarters.
Gastonia, NC Revenue Multiples
In the Charlotte-Gastonia-Concord, NC-SC metro area, small businesses will typically sell for 0.80 times the selling company's revenues. This was the mean revenue multiple for Q4 2008 in this part of the country.
In other words, a firm with revenues of $200,000 might list for $159,326. Remember, however, that this is just an average for revenue multiples in Gastonia and surrounding communities. Some firms will have higher revenue multiples and others will have lower revenue multiples.
Here is how median revenue multiples are trending in the Gastonia area, based on BizBuySell.com's quarterly reports.
According to BizBuySell.com, the median revenues for its business-for-sale listings was $543,554 in Q4 2008.
Cash Flow Multiples In Gastonia, NC
Another popular way to value a business is through cash flow multiples.
For Q4 2008, the average cash flow multiple for businesses listed in the Charlotte-Gastonia-Concord, NC-SC metro area was 3.32.
So, a firm with cash flows of $120,000 might have an asking price of $398,966. That's if the business fits the area average. Most businesses will not conform to industry- or area averages.
Here is how cash flow multiples are trending in the Gastonia area, based on BizBuySell.com's quarterly reports.
Flow Multiple
In case you were wondering what typical cash flows are for a business in Gastonia, BizBuySell.com reports that the median cash flow for Gastonia area businesses was $105,924 in Q4 2008.
Things to Consider When Buying a Business in Gastonia, NC
Many buyers want to look at all available options, thinking they'll recognize what they're looking for when they see it. That approach is actually a waste of valuable time and energy and can lead to frustration. A better strategy is to define what you are looking for and then only look at businesses that meet your criteria. This useful business buying advice comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.
Business Valuations for Gastonia, NC Businesses
If you have a specific business in mind and want to look at comparables in the area, we recommend the BizBuySell.com Business Valuation Tool. You can refine the dataset that generates business valuations to meet your specific needs, and 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 indicator that tracks the health of the U.S. small business economy. If you find this data interesting, be sure to visit BizBuySell.com Insights Report for more information.
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