Buying a Business
Cost to Buy a Business in Quincy
Considering purchasing a company in Quincy, Massachusetts? Your first question will probably be "How much does it cost to buy a business in Quincy?"
The good news is the team at BizBuySell.com has made some data available on what it costs to buy a business in Quincy.
BizBuySell.com is the largest online marketplace for business-for-sale transactions. Their listings include almost all of the available listings from business brokers nationwide. They also have many FSBO (for sale by owner) business-for-sale listings.
If you are looking to buy a business in Massachusetts, check out the BizBuySell Massachusetts listings to see the latest business-for-sale listings for Quincy and other Massachusetts towns.
Business Valuations in Quincy, MA
Based on the BizBuySell.com data, the median asking price for an Quincy business-for-sale listing in Q4 2008, the quarter when they most recently released their data, was $199,000.
That was based on 613 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 in the area and so are likely representative of Quincy business valuations.
Remember 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 Quincy business for much less. At the same time, some Quincy businesses may cost much more.
Another thing you should know is that this is the asking price for an Quincy business. Typically, when an entrepreneur lists a business for sale, they start with an asking price that is higher than the final sale price. The sale-price-to-asking-price ratios depend on deal specifics but typically might be between 0.85 and 0.90. In other words, a business listed for $100,000 might sell for between $85,000 and $90,000.
If you are interested in 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 8 quarters.
Revenue Multiples In Quincy, MA
In the Boston-Cambridge-Quincy, MA-NH metro area, businesses will typically sell for 0.80 times the selling company's revenues. This 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 $159,402. Remember, however, that this is strictly an average for revenue multiples in the area. Some entities will have higher revenue multiples and others will have lower revenue multiples.
Here is how median revenue multiples are moving in the Quincy area, based on BizBuySell.com's quarterly reports.
According to BizBuySell.com, the median revenues for its business-for-sale listings was $359,850 in Q4 2008.
Cash Flow Multiples In Quincy, MA
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 Boston-Cambridge-Quincy, MA-NH metro area was 2.95.
So, a firm with cash flows of $120,000 might have an asking price of $354,480. 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 Quincy area, based on BizBuySell.com's quarterly reports.
Flow Multiple
If you are interested in what cash flows are for a business in Quincy, BizBuySell.com reports that the median cash flow for Quincy area businesses was $96,034 in Q4 2008.
Tips for Quincy, MA Business Buyers
Before you start the process of buying a business, line up a team of professional advisors. Alert your attorney, accountant and financial advisors that you are looking for a business to buy. This good advice comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.
Business Valuations for Quincy, MA Businesses
If you have a specific business in mind and want to value the business, 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 additional information.
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