Q2 2009 Business Valuation Data
Business Valuations for Los Angeles, CA
Here's the latest BizBuySell.com Los Angeles, California business valuation statistics for Second Quarter 2009.
Los Angeles, CA Q2 2009 Business Valuations
According to the latest data compiled by BizBuySell.com, Los Angeles listings for businesses for sale in Q2 2009 had a median asking price of $235,000.
The median ask price for selling businesses was $225,000 in Q2 2008.
Q2 2009 Revenue Multiples In Los Angeles, CA
In the Los Angeles-Long Beach-Santa Ana, CA metro area, businesses will on average sell for 0.80 times the selling company's revenues. That was the mean revenue multiple for Q2 2009 in this area of the country.
According to the latest BizBuySell.com data, the median revenue for its listed businesses was $371,919 in Q2 2009.
To give this some context, the Q2 2008 revenue multiple was 0.85 and the median revenue for selling businesses was $350,000.
Q2 2009 Cash Flow Multiples In Los Angeles, CA
Cash flow multiples are a common way to value a business.
For Q2 2009, the average cash flow multiple for listed businesses in the Los Angeles-Long Beach-Santa Ana, CA metro area was 2.99.
BizBuySell.com reports that the median cash flow for Los Angeles area businesses was $96,000 in Q2 2009. In Q2 2008, cash flow multiples clocked in at 3.06 and the median cash flow was $90,000.
Number of Los Angeles Businesses for Sale in the Dataset
The study data comprised 3666 listings in the Los Angeles-Long Beach-Santa Ana, CA metro area. As such, some of the businesses used to derive the median valuation might be outside of Los Angeles, but they are in the area and so are likely representative of Los Angeles business valuations.
Considerations When Valuing a Business in Los Angeles, CA
The exit sale price for small businesses are frequently based on rules of thumb that are known to buyers. While finance academics may object to this approach, it is still very prevalent because it is an easy way to value a business and buyers often are willing to pay the amounts derived from such rules of thumb. This useful tip for valuing a company comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.
Business Valuations for Los Angeles, 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 additional information.
Historical Data for Los Angeles, CA Business Valuations
With respect to local trends in business-for-sale asking prices, here are the median asking prices for businesses in the Los Angeles-Long Beach-Santa Ana, CA metro area for the last 10 quarters.
The chart below shows how median revenue multiples are tracking in the Los Angeles area, based on BizBuySell.com's quarterly reports.
The table below provides data on how cash flow multiples are trending in the Los Angeles area, based on BizBuySell.com's quarterly reports.
Flow Multiple
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