Q1 2009 Costs to Buy a Business
How Much Is My Round Rock Business Worth?
We just received the latest Round Rock, Texas business-for-sale statistics.
Round Rock, TX Q1 2009 Business Valuations
Based on data compiled by BizBuySell.com, Round Rock business-for-sale listings in Q1 2009 had a median asking price of $325,000.
That compares to a median ask price of $297,000 in Q1 2008. Because the median ask price for businesses for sale in Round Rock has risen year over year, we can conclude that many smaller firms in Round Rock 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 Round Rock company for much less. However, some Round Rock businesses may be selling for much more.
Another thing to remember is that this is the asking price for a Round Rock business. When an entrepreneur 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 depends on deal specifics. That means a company listed for $200,000 might be sold for between $170,000 and $180,000.
Number of Round Rock Businesses for Sale in the Dataset
The study data comprised 213 listings in the Austin-Round Rock, TX metro area. As such, some of the businesses used to derive the median valuation might be outside of Round Rock, but they are in the area and so are probably representative of Round Rock business valuations.
One year ago, in Q1 2008, the BizBuySell.com dataset for Round Rock spanned 184 listings. In a market where you would think fewer business owners would be selling, it's a bit surprising to see more Round Rock business-for-sale listings.
Q1 2009 Revenue Multiples In Round Rock, TX
In the Austin-Round Rock, TX metro area, businesses will usually sell for 0.97 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 $194,877. Remember, however, 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.
According to BizBuySell.com, the median revenues for its business-for-sale listings was $577,000 in Q1 2009.
To give this some context, the Q1 2008 revenue multiple was 0.95 and the median revenue for listed businesses was $453,887.
Q1 2009 Cash Flow Multiples In Round Rock, TX
Cash flow multiples are another common way to value a business.
For Q1 2009, the average cash flow multiple for listed businesses in the Austin-Round Rock, TX metro area was 3.88.
So, a business with cash flows of $150,000 might have an asking price of $582,352. 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 Round Rock, BizBuySell.com reports that the median cash flow for Round Rock area businesses was $120,000 in Q1 2009. In Q1 2008, cash flow multiples clocked in at 3.56 and the median cash flow was $96,566.
Things to Consider When Selling a Business in Round Rock, TX
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 Round Rock, TX 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 published every quarter. If you find these trends interesting, take a moment to visit BizBuySell.com Insights Report for more information.
Historical Data for Round Rock, TX Business Valuations
If you are interested in trends in business-for-sale asking prices, here are the median asking prices for companies in the Austin-Round Rock, TX metro area for the last 9 quarters.
Here is how median revenue multiples are trending in the Round Rock area, based on BizBuySell.com's quarterly reports.
The table below shows how cash flow multiples are trending in the Round Rock area, based on BizBuySell.com's quarterly reports.
Flow Multiple
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