Buying a Business
Cost to Buy a Business in Marietta
Considering purchasing a company in Marietta, Georgia? You're no doubt wondering how much a typical Marietta, Georgia business costs to buy.
Luckily, the folks at BizBuySell.com have made some data available on what it costs to buy a business in Marietta.
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. They also have many FSBO (for sale by owner) business-for-sale listings.
If you are looking to buy a business in Georgia, peruse the BizBuySell Georgia listings to see the latest business-for-sale listings for Marietta and other Georgia towns.
Business Valuations in Marietta, GA
According to BizBuySell.com, the median asking price for an Marietta business-for-sale listing in Q4 2008, the quarter when they most recently released their data, was $239,500.
That was based on 954 listings in the Atlanta-Sandy Springs-Marietta, GA metro area. Many of the businesses in the dataset are outside of Marietta, but they are nearby and so are probably representative of Marietta 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 Marietta business for much less. At the same time, some Marietta businesses may cost much more.
Another thing you should know is that this is the asking price for an Marietta 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 companies in the Atlanta-Sandy Springs-Marietta, GA metro area for the last 8 quarters.
Revenue Multiples In Marietta, GA
In the Atlanta-Sandy Springs-Marietta, GA metro area, businesses will typically sell for 1.01 times the selling company's revenues. That was the mean revenue multiple for Q4 2008 in this area of the country.
In other words, a business that has revenues of $200,000 might list for $201,339. Remember, however, that this is only an average for revenue multiples in Marietta and surrounding communities. Some entities will have higher revenue multiples and others will have lower revenue multiples.
Here is how median revenue multiples are trending in the Marietta area, based on BizBuySell.com's quarterly reports.
According to BizBuySell.com, the median revenues for its business-for-sale listings was $360,000 in Q4 2008.
Cash Flow Multiples In Marietta, GA
Another popular way to value a business is through cash flow multiples.
For Q4 2008, the average cash flow multiple for listed businesses in the Atlanta-Sandy Springs-Marietta, GA metro area was 3.51.
So, a business with cash flows of $120,000 might have an asking price of $421,536. That's if the business fits the area average. Most businesses will not conform to industry- or area averages.
The table below shows how cash flow multiples are trending in the Marietta area, based on BizBuySell.com's quarterly reports.
Flow Multiple
If you are interested in what cash flows are for a business in Marietta, BizBuySell.com reports that the median cash flow for Marietta area businesses was $99,450 in Q4 2008.
Tips for Marietta, GA Business Buyers
Never underestimate what it will take to be a successful entrepreneur. It's important to understand that owners work long hours, and, in many casees, it can take a while before a business generates sufficient cash flow to pay the owner well. This useful tip comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.
Business Valuations for Marietta, GA 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 published on a quarterly basis. If you find this data interesting, be sure to visit BizBuySell.com Insights Report for more information.
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