Q1 2009 Costs to Buy a Business
How Much Is My West Allis Business Worth?
We just received the latest West Allis, Wisconsin business-for-sale statistics.
West Allis, WI Q1 2009 Business Valuations
According to statistics issued by BizBuySell.com, West Allis business-for-sale listings in Q1 2009 had a median asking price of $300,000.
That compares to a median ask price of $392,500 in Q1 2008. Given that West Allis, WI median business asking prices appear to be dropping, it suggests that larger West Allis 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 West Allis company for much less. However, some West Allis businesses may be selling for much more.
Another thing to remember is that this is the asking price for a West Allis business. When a business owner lists a company for sale, they typically set a price that ends up being more than the ultimate sale price. A sale-to-ask ratio typically might be between 0.85 and 0.90, but of course it varies considerably. In practice, this means a business listed for $250,000 would go for between $212,500 and $225,000.
Number of West Allis Businesses for Sale in the Dataset
The study data comprised 100 listings in the Milwaukee-Waukesha-West Allis, WI metro area. Many of the businesses in the dataset are outside of West Allis, but they are in the area and so are probably representative of West Allis business valuations.
One year ago, in Q1 2008, the BizBuySell.com dataset for West Allis spanned 98 listings. The downward trend in the number of West Allis business-for-sale listings is indicative of the current down economy.
Q1 2009 Revenue Multiples In West Allis, WI
In the Milwaukee-Waukesha-West Allis, WI metro area, companies will typically sell for 1.04 times the selling company's revenues. That was the mean revenue multiple for Q1 2009 in this metro area.
In other words, a firm with revenues of $200,000 might list for $207,939. Keep in mind 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 $493,087 in Q1 2009.
To put this in perspective, the Q1 2008 revenue multiple was 1.04 and the median revenue for listed businesses was $517,540.
Q1 2009 Cash Flow Multiples In West Allis, WI
Cash flow multiples are another popular technique to value a business.
For Q1 2009, the average cash flow multiple for listed businesses in the Milwaukee-Waukesha-West Allis, WI metro area was 4.49.
So, a business with cash flows of $150,000 might have an asking price of $673,370. That calculation is dependent on the business selling for the area's average multiple. Cash flow multiples will usually vary considerably based on many factors.
If you are interested in what cash flows are for a business in West Allis, BizBuySell.com reports that the median cash flow for West Allis area businesses was $92,418 in Q1 2009. In Q1 2008, cash flow multiples clocked in at 3.74 and the median cash flow was $118,334.
Things to Consider When Selling a Business in West Allis, WI
In this difficult econonmic environment, sellers must be bankers. That means you should offer seller financing to prospective buyers because you, as a seller, may be their only viable source of financing. This tip for selling a business was provided by Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.
Business Valuations for West Allis, WI Businesses
If you are contemplating buying a business or selling a business and would like to get an estimated business valuation, 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 West Allis, WI Business Valuations
If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Milwaukee-Waukesha-West Allis, WI metro area for the last 9 quarters.
Here is how median revenue multiples are moving in the West Allis area, based on BizBuySell.com's quarterly reports.
Here is how cash flow multiples are trending in the West Allis area, based on BizBuySell.com's quarterly reports.
Flow Multiple
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