Q1 2009 Costs to Buy a Business
How Much Is My Dayton Business Worth?
We just received the latest Dayton, Ohio business valuation data for First Quarter 2009.
Q1 2009 Business Valuations in Dayton, OH
Based on data compiled by BizBuySell.com, Dayton business-for-sale listings in Q1 2009 had a median asking price of $400,000.
That compares to a median ask price of $350,000 in Q1 2008. Because the median ask price for businesses for sale in Dayton has risen year over year, we can conclude that many smaller firms in Dayton 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 Dayton company for much less. Alternatively, some Dayton businesses may be selling for much more.
Another thing to remember is that this is the asking price for a Dayton business. When a business owner lists a business for sale, they typically set a price that ends up being more than the final sale price. A sale-to-ask ratio typically might be between 0.85 and 0.90, but of course it varies considerably. That means a company listed for $200,000 might be sold for between $170,000 and $180,000.
Number of Dayton Businesses for Sale in the Dataset
The study data comprised 63 listings in the Dayton, OH metro area. As such, some of the businesses used to derive the median valuation might be outside of Dayton, but they are in the area and so are likely representative of Dayton business valuations.
One year ago, in Q1 2008, the BizBuySell.com dataset for Dayton spanned 67 listings. The downward trend in the number of Dayton business-for-sale listings is indicative of the current down economy.
Dayton, OH Q1 2009 Revenue Multiples
In the Dayton, OH metro area, small businesses will typically sell for 0.98 times the selling company's revenues. This was the mean revenue multiple for Q1 2009 in this area of the country.
In other words, a business that has revenues of $200,000 might list for $195,585. 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 $485,000 in Q1 2009.
To put this in perspective, the Q1 2008 revenue multiple was 1.13 and the median revenue for listed businesses was $420,824.
Q1 2009 Cash Flow Multiples In Dayton, OH
Cash flow multiples are another common way to value a business.
For Q1 2009, the average cash flow multiple for listed businesses in the Dayton, OH metro area was 4.37.
So, a business with cash flows of $150,000 might have an asking price of $655,940. 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 Dayton, BizBuySell.com reports that the median cash flow for Dayton area businesses was $93,000 in Q1 2009. In Q1 2008, cash flow multiples clocked in at 4.16 and the median cash flow was $100,000.
Things to Consider When Selling a Business in Dayton, OH
It's critical to keep the potential sale of your business as confidential as possible. If that confidentiality is compromised, you risk losing customers, employees and vendors. Loose lips sink ships...and sink business-for-sale transactions as well! This useful business selling advice comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.
Business Valuations for Dayton, OH Businesses
If you are contemplating buying a business or selling a business and would like to find out how much a business is worth, 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 Dayton, OH Business Valuations
If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Dayton, OH metro area for the last 9 quarters.
Here is how median revenue multiples are changing in the Dayton area, based on BizBuySell.com's quarterly reports.
The table below shows how cash flow multiples are trending in the Dayton area, based on BizBuySell.com's quarterly reports.
Flow Multiple
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