Q1 2009 Costs to Buy a Business
How Much Is My Solano Business Worth?
We just received the latest Solano, California statistics on business valuations for First Quarter 2009.
Q1 2009 Business Valuations in Solano, CA
Based on data compiled by BizBuySell.com, Solano business-for-sale listings in Q1 2009 had a median asking price of $230,000.
That compares to a median ask price of $0 in . Because the median ask price for businesses for sale in Solano has risen year over year, we can conclude that many smaller firms in Solano 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 Solano company for much less. Similarly, some Solano businesses may be selling for much more.
Another thing to remember is that this is the asking price for a Solano business. When a business owner lists a company 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 Solano Businesses for Sale in the Dataset
The study data comprised 175 listings in the Contra Costa-Alameda-Solano, CA metro area. As such, some of the businesses used to derive the median valuation might be outside of Solano, but they are in the area and so are likely representative of Solano business valuations.
One year ago, in , the BizBuySell.com dataset for Solano spanned listings. In a market where you would think fewer business owners would be selling, it's a bit surprising to see more Solano business-for-sale listings.
Q1 2009 Revenue Multiples In Solano, CA
In the Contra Costa-Alameda-Solano, CA metro area, businesses will typically sell for 0.59 times the selling company's revenues. This was the mean revenue multiple for Q1 2009 in this metro area.
In other words, a business that has revenues of $200,000 might list for $117,162. Remember, however, that this is in fact an average for revenue multiples in Solano and surrounding communities. Some 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 $509,020 in Q1 2009.
In terms of trending year over year, the revenue multiple was 0.00 and the median revenue for listed businesses was $0.
Q1 2009 Cash Flow Multiples In Solano, CA
Cash flow multiples are another popular technique to value a business.
For Q1 2009, the average cash flow multiple for businesses listed in the Contra Costa-Alameda-Solano, CA metro area was 3.22.
So, a company with cash flows of $150,000 might have an asking price of $482,682. 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 Solano, BizBuySell.com reports that the median cash flow for Solano area businesses was $105,000 in Q1 2009. In , cash flow multiples clocked in at 0.00 and the median cash flow was $0.
Tips for Solano, CA Business Sellers
Selling a business can be a highly emotional process. To many business owners, the business is their baby, the result of years of hard work. However, when selling a business, it's imperative to keep emotions in check. Be objective and rational and you'll get across the finish line in the best possible way. This good selling-a-business tip comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.
Business Valuations for Solano, CA 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 Solano, CA Business Valuations
If you are interested in trends in business-for-sale asking prices, here are the median asking prices for companies in the Contra Costa-Alameda-Solano, CA metro area for the last 9 quarters.
Here is how median revenue multiples are trending in the Solano area, based on BizBuySell.com's quarterly reports.
The table below shows how cash flow multiples are trending in the Solano area, based on BizBuySell.com's quarterly reports.
Flow Multiple
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