Q1 2009 Costs to Buy a Business
How Much Is My Gastonia Business Worth?
We just received the latest Gastonia, North Carolina business valuation data for First Quarter 2009.
Gastonia, NC Q1 2009 Business Valuations
According to statistics issued by BizBuySell.com, Gastonia business-for-sale listings in Q1 2009 had a median asking price of $275,000.
That compares to a median ask price of $325,000 in Q1 2008. Given that Gastonia, NC median business asking prices appear to be dropping, it suggests that larger Gastonia businesses in may be holding off on selling until the economy turns around.
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 Gastonia company for much less. Alternatively, some Gastonia businesses may be selling for much more.
Another thing to remember is that this is the asking price for a Gastonia 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 depends on deal specifics. With this in mind, a business listed for $175,000 might sell for between $148,750 and $157,500.
Number of Gastonia Businesses for Sale in the Dataset
The study data comprised 247 listings in the Charlotte-Gastonia-Concord, NC-SC metro area. Many of the businesses in the dataset are outside of Gastonia, but they are in the area and so are likely representative of Gastonia business valuations.
One year ago, in Q1 2008, the BizBuySell.com dataset for Gastonia spanned 202 listings. In a market where you would think fewer business owners would be selling, it's a bit surprising to see more Gastonia business-for-sale listings.
Q1 2009 Revenue Multiples In Gastonia, NC
In the Charlotte-Gastonia-Concord, NC-SC metro area, small businesses will usually sell for 0.78 times the selling company's revenues. This was the mean revenue multiple for Q1 2009 in this part of the country.
In other words, a business that has revenues of $200,000 might list for $156,697. Keep in mind that this is only an average for revenue multiples in Gastonia and surrounding communities. 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 $484,278 in Q1 2009.
To put this in perspective, the Q1 2008 revenue multiple was 0.79 and the median revenue for listed businesses was $526,228.
Q1 2009 Cash Flow Multiples In Gastonia, NC
Cash flow multiples are another common way to value a business.
For Q1 2009, the average cash flow multiple for businesses listed in the Charlotte-Gastonia-Concord, NC-SC metro area was 3.53.
So, a firm with cash flows of $150,000 might have an asking price of $528,976. That's only if the firm complies with the local average. Most businesses will not conform to industry- or area averages.
If you are interested in what cash flows are for a business in Gastonia, BizBuySell.com reports that the median cash flow for Gastonia area businesses was $100,000 in Q1 2009. In Q1 2008, cash flow multiples clocked in at 3.41 and the median cash flow was $108,604.
Tips for Gastonia, NC Business Sellers
When selling a business, valuations will be based on your profits. So, be sure to sell a business at a point when your profits are doing well if you want to sell for a great price. This helpful tip comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.
Business Valuations for Gastonia, NC Businesses
If you are contemplating buying a business or selling a business and would like to look at comparables in the area, 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 published every quarter. If you find these trends interesting, take a moment to visit BizBuySell.com Insights Report for more information.
Historical Data for Gastonia, NC Business Valuations
If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Charlotte-Gastonia-Concord, NC-SC metro area for the last 9 quarters.
Here is how median revenue multiples are changing in the Gastonia area, based on BizBuySell.com's data.
The table below shows how cash flow multiples are trending in the Gastonia area, based on BizBuySell.com's quarterly reports.
Flow Multiple
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