Q1 2009 Costs to Buy a Business
How Much Is My Kenner Business Worth?
Every quarter, BizBuySell.com published business valuation data, and we now have their latest Kenner, Louisiana business valuation data for First Quarter 2009.
Q1 2009 Business Valuations in Kenner, LA
According to statistics issued by BizBuySell.com, Kenner business-for-sale listings in Q1 2009 had a median asking price of $225,000.
That compares to a median ask price of $225,000 in Q1 2008. In spite of the difficult economy, Kenner, LA business valuations appear to be relatively stable.
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 Kenner company for much less. However, some Kenner businesses may be selling for much more.
Also, this is the asking price for a Kenner business. When a business owner lists a business 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. So, a business listed for $100,000 might sell for between $85,000 and $90,000.
Number of Kenner Businesses for Sale in the Dataset
The study data comprised 88 listings in the New Orleans-Metairie-Kenner, LA metro area. Many of the businesses in the dataset are outside of Kenner, but they are in the area and so are probably representative of Kenner business valuations.
One year ago, in Q1 2008, the BizBuySell.com dataset for Kenner spanned 69 listings. In a market where you would think fewer business owners would be selling, it's a bit surprising to see more Kenner business-for-sale listings.
Kenner, LA Q1 2009 Revenue Multiples
In the New Orleans-Metairie-Kenner, LA metro area, businesses will usually sell for 1.04 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 business that has revenues of $200,000 might list for $207,400. Remember, however, that this is just an average for revenue multiples in Kenner and surrounding communities. Some small businesses 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 $318,784 in Q1 2009.
In terms of trending year over year, the Q1 2008 revenue multiple was 0.87 and the median revenue for listed businesses was $325,292.
Q1 2009 Cash Flow Multiples In Kenner, LA
Cash flow multiples are another common way to value a business.
For Q1 2009, the average cash flow multiple for businesses listed in the New Orleans-Metairie-Kenner, LA metro area was 3.69.
So, a company with cash flows of $150,000 might have an asking price of $553,589. That's only if the firm complies with the local average. Most businesses will not conform to industry- or area averages.
In case you were wondering what typical cash flows are for a business in Kenner, BizBuySell.com reports that the median cash flow for Kenner area businesses was $79,950 in Q1 2009. In Q1 2008, cash flow multiples clocked in at 3.66 and the median cash flow was $65,000.
Things to Consider When Selling a Business in Kenner, LA
The best time to sell a business is when you don't have to sell the business. If you have to sell under time pressure, you are not likely to get the best sale price. So, don't wait to sell a business until something (e.g. bad health, a divorce, etc.) forces you to sell. This advice on selling a business comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.
Business Valuations for Kenner, LA 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 Kenner, LA Business Valuations
If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the New Orleans-Metairie-Kenner, LA metro area for the last 9 quarters.
Here is how median revenue multiples are trending in the Kenner area, based on BizBuySell.com's quarterly reports.
The table below shows how cash flow multiples are trending in the Kenner area, based on BizBuySell.com's quarterly reports.
Flow Multiple
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