Q1 2009 Costs to Buy a Business
How Much Is My Tulsa Business Worth?
We just received the latest Tulsa, Oklahoma small business valuation trend data for First Quarter 2009.
Q1 2009 Business Valuations in Tulsa, OK
According to statistics issued by BizBuySell.com, Tulsa business-for-sale listings in Q1 2009 had a median asking price of $375,000.
That compares to a median ask price of $472,000 in Q1 2008. Given that Tulsa, OK median business asking prices appear to be dropping, it suggests that larger Tulsa 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 Tulsa company for much less. However, some Tulsa businesses may be selling for much more.
Another thing to remember is that this is the asking price for a Tulsa business. When a company 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 Tulsa Businesses for Sale in the Dataset
The study data comprised 36 listings in the Tulsa, OK metro area. Many of the businesses in the dataset are outside of Tulsa, but they are in the area and so are probably representative of Tulsa business valuations.
One year ago, in Q1 2008, the BizBuySell.com dataset for Tulsa spanned 44 listings. The downward trend in the number of Tulsa business-for-sale listings is indicative of the current down economy.
Q1 2009 Revenue Multiples In Tulsa, OK
In the Tulsa, OK metro area, businesses will typically sell for 0.78 times the selling company's revenues. That 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 $156,345. Keep in mind that this is simply an average for revenue multiples in the area. Some companies 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 $500,000 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 $494,818.
Q1 2009 Cash Flow Multiples In Tulsa, OK
Cash flow multiples are another useful method to value a business.
For Q1 2009, the average cash flow multiple for listed businesses in the Tulsa, OK metro area was 3.76.
So, a company with cash flows of $150,000 might have an asking price of $564,588. That's only if the firm complies with the local average. Actual cash flow multiples are based on business specifics.
If you are interested in what cash flows are for a business in Tulsa, BizBuySell.com reports that the median cash flow for Tulsa area businesses was $109,324 in Q1 2009. In Q1 2008, cash flow multiples clocked in at 4.13 and the median cash flow was $115,450.
Things to Consider When Selling a Business in Tulsa, OK
Most business sales involve seller financing, especially in this enviroment when credit is tight. You have to finance as much as 70% of the purchase price. Typically, you would structure the deal to be paid off in full within four to five years. This helpful tip comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.
Business Valuations for Tulsa, OK Businesses
If you are contemplating buying a business or selling a business and would like to find out how much a business is worth, 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 Tulsa, OK Business Valuations
If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Tulsa, OK metro area for the last 9 quarters.
Here is how median revenue multiples are trending in the Tulsa area, based on BizBuySell.com's quarterly reports.
Here is how cash flow multiples are trending in the Tulsa area, based on BizBuySell.com's quarterly reports.
Flow Multiple
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