Buying a Business
Cost to Buy a Business in Waukesha
Considering purchasing a company in Waukesha, Wisconsin? Your first question will probably be "How much does it cost to buy a business in Waukesha?"
Luckily, the team at BizBuySell.com has made some data available on what it costs to buy a business in Waukesha.
BizBuySell.com is the Internet's largest and most heavily trafficked business for sale marketplace. 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 Wisconsin, peruse the BizBuySell Wisconsin listings to see the latest business-for-sale listings for Waukesha and other Wisconsin towns.
Business Valuations in Waukesha, WI
According to BizBuySell.com, the median asking price for an Waukesha business-for-sale listing in Q4 2008, the quarter when they most recently released their data, was $367,450.
That was based on 84 listings in the Milwaukee-Waukesha-West Allis, WI metro area. As such, some of the businesses used to derive the median valuation might be outside of Waukesha, but they are nearby and so are likely representative of Waukesha 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 Waukesha business for much less. The flip side is that some Waukesha businesses may cost much more.
Another thing you should know is that this is the asking price for an Waukesha business. Typically, when a business owner lists a company 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. 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 Milwaukee-Waukesha-West Allis, WI metro area for the last 8 quarters.
Revenue Multiples In Waukesha, WI
In the Milwaukee-Waukesha-West Allis, WI metro area, businesses will typically sell for 1.02 times the selling company's revenues. The data indicates that is 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 $203,239. Keep in mind 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 Waukesha area, based on BizBuySell.com's data.
According to BizBuySell.com, the median revenues for its business-for-sale listings was $505,433 in Q4 2008.
Cash Flow Multiples In Waukesha, WI
Another common method to value a business is through cash flow multiples.
For Q4 2008, the average cash flow multiple for listed businesses in the Milwaukee-Waukesha-West Allis, WI metro area was 4.42.
So, a company with cash flows of $120,000 might have an asking price of $530,939. 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 Waukesha area, based on BizBuySell.com's quarterly reports.
Flow Multiple
In case you were wondering what typical cash flows are for a business in Waukesha, BizBuySell.com reports that the median cash flow for Waukesha area businesses was $97,640 in Q4 2008.
Things to Consider When Buying a Business in Waukesha, WI
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 Waukesha, WI Businesses
If you have a specific business in mind and want to get a ballpark business valuation, 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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