Q1 2009 Costs to Buy a Business
How Much Is My Sandy Springs Business Worth?
We just received the latest Sandy Springs, Georgia business valuation data for First Quarter 2009.
Sandy Springs, GA Q1 2009 Business Valuations
According to statistics issued by BizBuySell.com, Sandy Springs business-for-sale listings in Q1 2009 had a median asking price of $249,000.
That compares to a median ask price of $250,000 in Q1 2008. Given that Sandy Springs, GA median business asking prices appear to be dropping, it suggests that larger Sandy Springs 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 Sandy Springs company for much less. However, some Sandy Springs businesses may be selling for much more.
Another thing to remember is that this is the asking price for a Sandy Springs business. When a business owner lists a company for sale, they typically set a price that ends up being more than the contracted 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 Sandy Springs Businesses for Sale in the Dataset
The study data comprised 929 listings in the Atlanta-Sandy Springs-Marietta, GA metro area. Many of the businesses in the dataset are outside of Sandy Springs, but they are in the area and so are likely representative of Sandy Springs business valuations.
One year ago, in Q1 2008, the BizBuySell.com dataset for Sandy Springs spanned 969 listings. The downward trend in the number of Sandy Springs business-for-sale listings is indicative of the current down economy.
Sandy Springs, GA Q1 2009 Revenue Multiples
In the Atlanta-Sandy Springs-Marietta, GA metro area, small businesses will typically sell for 0.98 times the selling company's revenues. The data indicates that is the mean revenue multiple for Q1 2009 in this part of the country.
In other words, a firm with revenues of $200,000 might list for $195,955. Remember, however, that this is just an average for revenue multiples in Sandy Springs 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 $375,114 in Q1 2009.
To put this in perspective, the Q1 2008 revenue multiple was 1.02 and the median revenue for listed businesses was $358,208.
Q1 2009 Cash Flow Multiples In Sandy Springs, GA
Cash flow multiples are another common way to value a business.
For Q1 2009, the average cash flow multiple for listed businesses in the Atlanta-Sandy Springs-Marietta, GA metro area was 3.52.
So, a business with cash flows of $150,000 might have an asking price of $528,425. That's only if the firm complies with the local average. Actual cash flow multiples are based on business specifics.
In case you were wondering what typical cash flows are for a business in Sandy Springs, BizBuySell.com reports that the median cash flow for Sandy Springs area businesses was $100,000 in Q1 2009. In Q1 2008, cash flow multiples clocked in at 3.56 and the median cash flow was $94,823.
Things to Consider When Selling a Business in Sandy Springs, GA
Buyers want a business that is easy to understand and easy to run. Prior to selling a business, be sure to prepare a thorough operations manual that explains in detail how a new buyer would run the business. This helpful advice on how to buy a business comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.
Business Valuations for Sandy Springs, GA 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 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 more information.
Historical Data for Sandy Springs, GA Business Valuations
If you are interested in trends in business-for-sale asking prices, here are the median asking prices for companies in the Atlanta-Sandy Springs-Marietta, GA metro area for the last 9 quarters.
Here is how median revenue multiples are moving in the Sandy Springs area, based on BizBuySell.com's quarterly reports.
Here is how cash flow multiples are trending in the Sandy Springs area, based on BizBuySell.com's quarterly reports.
Flow Multiple
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