Q2 2009 Business Valuation Data

Business Valuations for New Orleans, LA

BizBuySell.com has published its latest business valuation data, including New Orleans, Louisiana business valuation statistics for Second Quarter 2009.

Q2 2009 Business Valuations in New Orleans, LA

According to the latest data compiled by BizBuySell.com, New Orleans listings for businesses for sale in Q2 2009 had a median asking price of $250,000.

The median ask price for selling businesses was $235,000 in Q2 2008.

Q2 2009 Revenue Multiples In New Orleans, LA

In the New Orleans-Metairie-Kenner, LA metro area, companies will on average sell for 1.04 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 $400,000 in Q2 2009.

To give this some context, the Q2 2008 revenue multiple was 0.99 and the median revenue for selling businesses was $378,000.

Q2 2009 Cash Flow Multiples In New Orleans, LA

Cash flow multiples are a useful metric that is used to value a business.

For Q2 2009, the average cash flow multiple for listed businesses in the New Orleans-Metairie-Kenner, LA metro area was 4.00.

BizBuySell.com reports that the median cash flow for New Orleans area businesses was $81,659 in Q2 2009. In Q2 2008, cash flow multiples clocked in at 3.72 and the median cash flow was $75,737.

Number of New Orleans Businesses for Sale in the Dataset

The study data comprised 71 listings in the New Orleans-Metairie-Kenner, LA metro area. As such, some of the businesses used to derive the median valuation might be outside of New Orleans, but they are in the area and so are likely representative of New Orleans business valuations.

Considerations When Valuing a Business in New Orleans, LA

In order to properly assess the value of a business, you have to have access to data regarding recent business sales and merger activity. If you have access to such a database of company valuations, it's a relatively fast, cheap exercise to calculate a company's value by using sales prices for comparable businesses. This tip for valuing a business was provided by Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.

Business Valuations for New Orleans, LA 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 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 New Orleans, LA Business Valuations

With respect to local trends in business-for-sale asking prices, here are the median asking prices for companies in the New Orleans-Metairie-Kenner, LA metro area for the last 10 quarters.

Quarter
Median Ask
Q1 2007
$522,500
Q2 2007
$267,500
Q3 2007
$242,500
Q4 2007
$205,000
Q1 2008
$225,000
Q2 2008
$235,000
Q3 2008
$245,000
Q4 2008
$250,000
Q1 2009
$225,000
Q2 2009
$250,000

The chart below shows how median revenue multiples are trending in the New Orleans area, based on BizBuySell.com's economic data.

Quarter
Revenue Multiple
Q1 2007
0.73
Q2 2007
0.88
Q3 2007
1.01
Q4 2007
0.86
Q1 2008
0.87
Q2 2008
0.99
Q3 2008
1.01
Q4 2008
1.07
Q1 2009
1.04
Q2 2009
1.04

The table below provides data on how cash flow multiples are trending in the New Orleans area, based on BizBuySell.com's quarterly reports.

Quarter
Median Cash
Flow Multiple
Q1 2007
3.31
Q2 2007
3.33
Q3 2007
4.11
Q4 2007
3.83
Q1 2008
3.66
Q2 2008
3.72
Q3 2008
3.83
Q4 2008
3.71
Q1 2009
3.69
Q2 2009
4.00

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