Buying a Business
Cost to Buy a Business in Sandy Springs
Considering purchasing a company in Sandy Springs, Georgia? You're no doubt wondering how much a typical Sandy Springs, 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 Sandy Springs.
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 are looking to buy a business in Georgia, check out the BizBuySell Georgia listings to get instant access to business-for-sale listings for Sandy Springs and other Georgia towns.
Business Valuations in Sandy Springs, GA
According to BizBuySell.com, the median asking price for an Sandy Springs 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. As such, some of the businesses used to derive the median valuation might be outside of Sandy Springs, but they are in the area and so are likely representative of Sandy Springs 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 Sandy Springs business for much less. At the same time, some Sandy Springs businesses may cost much more.
Another thing you should know is that this is the asking price for an Sandy Springs business. Typically, when a business owner 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 ratios depend on deal specifics 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 Atlanta-Sandy Springs-Marietta, GA metro area for the last 8 quarters.
Sandy Springs, GA Revenue Multiples
In the Atlanta-Sandy Springs-Marietta, GA metro area, companies 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 firm with revenues of $200,000 might list for $201,339. Remember, however, that this is just an average for revenue multiples in the area. Some firms will have higher revenue multiples and others will have lower revenue multiples.
Here is how median revenue multiples are trending in the Sandy Springs 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 Sandy Springs, 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 firm 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 Sandy Springs area, based on BizBuySell.com's quarterly reports.
Flow Multiple
In case you were wondering what typical cash flows are for a business in Sandy Springs, BizBuySell.com reports that the median cash flow for Sandy Springs area businesses was $99,450 in Q4 2008.
Tips for Sandy Springs, GA Business Buyers
If you are interested in buying an existing business, you want the business broker you are working with to be selling you to the seller. As such, it's important that you demonstrate that you're a qualified, motivated buyer. Being prepared and serious about your search is an important initial step. This advice comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.
Business Valuations for Sandy Springs, 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 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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