Q2 2009 Business Valuation Data
Business Valuations for Memphis, TN
Here's the latest BizBuySell.com Memphis, Tennessee reports on business valuations for Q2 2009.
Q2 2009 Business Valuations in Memphis, TN
Based on statistics prepared by BizBuySell.com, Memphis listings for businesses for sale in Q2 2009 had a median asking price of $208,000.
The median ask price for selling businesses was $275,000 in Q2 2008.
Q2 2009 Revenue Multiples In Memphis, TN
In the Memphis, TN-MS-AR metro area, businesses will on average sell for 0.84 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 $396,700 in Q2 2009.
As a reference point, the Q2 2008 revenue multiple was 0.79 and the median revenue for selling businesses was $480,832.
Q2 2009 Cash Flow Multiples In Memphis, TN
Cash flow multiples are a popular technique to value a business.
For Q2 2009, the average cash flow multiple for listed businesses in the Memphis, TN-MS-AR metro area was 3.64.
BizBuySell.com determined that the median cash flow for Memphis area businesses was $94,702 in Q2 2009. In Q2 2008, cash flow multiples clocked in at 3.38 and the median cash flow was $117,700.
Number of Memphis Businesses for Sale in the Dataset
The study data comprised 44 listings in the Memphis, TN-MS-AR metro area. As such, some of the businesses used to derive the median valuation might be outside of Memphis, but they are nearby and so are probably representative of Memphis business valuations.
Considerations When Valuing a Business in Memphis, TN
When using comparables to value a company, care should be taken to not simply use comparable companies in the same line of business. Selected comparables should also be similar in terms of size, financial condition, and earnings outlook. This helpful tip comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.
Business Valuations for Memphis, TN 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 Memphis, TN Business Valuations
With respect to local trends in business-for-sale asking prices, here are the median asking prices for companies in the Memphis, TN-MS-AR metro area for the last 10 quarters.
The chart below shows how median revenue multiples are moving in the Memphis area, based on BizBuySell.com's quarterly reports.
The table below provides data on how cash flow multiples are trending in the Memphis area, based on BizBuySell.com's quarterly reports.
Flow Multiple
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