Q1 2009 Costs to Buy a Business
How Much Is My Bellevue Business Worth?
We just received the latest Bellevue, Washington business valuation data for First Quarter 2009.
Bellevue, WA Q1 2009 Business Valuations
Based on data compiled by BizBuySell.com, Bellevue business-for-sale listings in Q1 2009 had a median asking price of $249,725.
That compares to a median ask price of $225,000 in Q1 2008. Because the median ask price for businesses for sale in Bellevue has risen year over year, we can conclude that many smaller firms in Bellevue are holding off on selling.
Please understand that this is the median asking price for a business. If you want to buy a business, you may be able to buy a Bellevue company for much less. Similarly, some Bellevue businesses may be selling for much more.
Also, this is the asking price for a Bellevue business. When a small business owner lists a company for sale, they typically set a price that ends up being more than the eventual sale price. A sale-to-ask ratio typically might be between 0.85 and 0.90, but of course it varies considerably. In practice, this means a business listed for $250,000 would go for between $212,500 and $225,000.
Number of Bellevue Businesses for Sale in the Dataset
The study data comprised 300 listings in the Seattle-Tacoma-Bellevue, WA metro area. As such, some of the businesses used to derive the median valuation might be outside of Bellevue, but they are nearby and so are likely representative of Bellevue business valuations.
One year ago, in Q1 2008, the BizBuySell.com dataset for Bellevue spanned 334 listings. The downward trend in the number of Bellevue business-for-sale listings is indicative of the current down economy.
Bellevue, WA Q1 2009 Revenue Multiples
In the Seattle-Tacoma-Bellevue, WA metro area, businesses will usually sell for 0.73 times the selling company's revenues. The data indicates that is the mean revenue multiple for Q1 2009 in this area of the country.
In other words, a firm with revenues of $200,000 might list for $145,903. Remember, however, that this is strictly an average for revenue multiples in the area. Some firms will have higher revenue multiples and others will have lower revenue multiples.
According to BizBuySell.com, the median revenues for its business-for-sale listings was $450,000 in Q1 2009.
As a reference point, the Q1 2008 revenue multiple was 0.78 and the median revenue for listed businesses was $393,790.
Q1 2009 Cash Flow Multiples In Bellevue, WA
Cash flow multiples are another common way to value a business.
For Q1 2009, the average cash flow multiple for businesses listed in the Seattle-Tacoma-Bellevue, WA metro area was 3.36.
So, a business with cash flows of $150,000 might have an asking price of $504,535. That's only if the firm complies with the local average. In practice, cash flow multiples can vary considerably from one business to another.
If you are interested in what cash flows are for a business in Bellevue, BizBuySell.com determined that the median cash flow for Bellevue area businesses was $99,947 in Q1 2009. In Q1 2008, cash flow multiples clocked in at 3.24 and the median cash flow was $92,330.
Things to Consider When Selling a Business in Bellevue, WA
When setting a price for a business, it's worthwhile to invest in a professional valuation. If you define the business selling price without a professional valuation, you may end up leaving money on the table or having an unrealistic price that prevents a deal from ever getting done. This helpful tip on buying a business comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.
Business Valuations for Bellevue, WA Businesses
If you are contemplating buying a business or selling a business and would like to value a specific business, we suggest you try the BizBuySell.com Business Valuation Tool. You can modify the dataset that creates business valuation estimates to meet your specific criteria. As a bonus, 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 report that tracks trends in the business-for-sale marketplace. If you find these trends interesting, take a moment to visit BizBuySell.com Insights Report for additional information.
Historical Data for Bellevue, WA Business Valuations
If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Seattle-Tacoma-Bellevue, WA metro area for the last 9 quarters.
Here is how median revenue multiples are trending in the Bellevue area, based on BizBuySell.com's economic data.
Here is how cash flow multiples are trending in the Bellevue area, based on BizBuySell.com's quarterly reports.
Flow Multiple
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