Q1 2009 Costs to Buy a Business
How Much Is My Winston-Salem Business Worth?
Every quarter, BizBuySell.com published business valuation data, and we now have their latest Winston-Salem, North Carolina business-for-sale statistics.
Q1 2009 Business Valuations in Winston-Salem, NC
According to statistics issued by BizBuySell.com, Winston-Salem business-for-sale listings in Q1 2009 had a median asking price of $210,000.
That compares to a median ask price of $395,000 in Q1 2008. Given that Winston-Salem, NC median business asking prices appear to be dropping, it suggests that larger Winston-Salem 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 Winston-Salem company for much less. However, some Winston-Salem businesses may be selling for much more.
Another thing to remember is that this is the asking price for a Winston-Salem 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 depends on deal specifics. As an example, a company listed for $125,000 would often sell for between $106,250 and $112,500.
Number of Winston-Salem Businesses for Sale in the Dataset
The study data comprised 20 listings in the Winston-Salem, NC metro area. Many of the businesses in the dataset are outside of Winston-Salem, but they are in the area and so are probably representative of Winston-Salem business valuations.
In Q1 2008, just one year ago, there were 29 Winston-Salem listings in the BizBuySell.com dataset. As a result of the recession, fewer Winston-Salem business owners are selling because they hope to weather the storm and sell after the economy turns around.
Q1 2009 Revenue Multiples In Winston-Salem, NC
In the Winston-Salem, NC metro area, businesses will typically sell for 0.58 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 $115,791. Remember, however, that this is just an average for revenue multiples in Winston-Salem and surrounding communities. Some small 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 $452,000 in Q1 2009.
In terms of trending year over year, the Q1 2008 revenue multiple was 0.80 and the median revenue for listed businesses was $420,000.
Q1 2009 Cash Flow Multiples In Winston-Salem, NC
Cash flow multiples are another common way to value a business.
For Q1 2009, the average cash flow multiple for businesses listed in the Winston-Salem, NC metro area was 2.89.
So, a business with cash flows of $150,000 might have an asking price of $432,759. That's only if the firm complies with the local average. In practice, cash flow multiples can vary considerably from one business to another.
If you are interested in what cash flows are for a business in Winston-Salem, BizBuySell.com reports that the median cash flow for Winston-Salem area businesses was $76,384 in Q1 2009. In Q1 2008, cash flow multiples clocked in at 3.63 and the median cash flow was $109,000.
Things to Consider When Selling a Business in Winston-Salem, NC
When selling a business, valuations will be based on your profits. So, be sure to sell a business at a point when your profits are doing well if you want to sell for a great price. This helpful tip comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.
Business Valuations for Winston-Salem, NC 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 Winston-Salem, NC Business Valuations
If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Winston-Salem, NC metro area for the last 9 quarters.
Here is how median revenue multiples are trending in the Winston-Salem area, based on BizBuySell.com's economic data.
Here is how cash flow multiples are trending in the Winston-Salem area, based on BizBuySell.com's quarterly reports.
Flow Multiple
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