Q2 2009 Business Valuation Data
Business Valuations for Riverside, CA
Here's the latest BizBuySell.com Riverside, California business-for-sale data on local business valuations.
Riverside, CA Q2 2009 Business Valuations
According to the latest data compiled by BizBuySell.com, Riverside listings for businesses for sale in Q2 2009 had a median asking price of $225,000.
The median ask price for selling businesses was $275,000 in Q2 2008.
Riverside, CA Q2 2009 Revenue Multiples
In the Riverside-San Bernardino-Ontario, CA metro area, businesses will on average sell for 0.86 times the selling company's revenues. This 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 $420,000 in Q2 2009.
To put this in perspective, the Q2 2008 revenue multiple was 0.87 and the median revenue for selling businesses was $480,000.
Q2 2009 Cash Flow Multiples In Riverside, CA
Cash flow multiples are a popular technique to value a business.
For Q2 2009, the average cash flow multiple for listed businesses in the Riverside-San Bernardino-Ontario, CA metro area was 3.14.
BizBuySell.com reports that the median cash flow for Riverside area businesses was $96,570 in Q2 2009. In Q2 2008, cash flow multiples clocked in at 3.32 and the median cash flow was $102,996.
Number of Riverside Businesses for Sale in the Dataset
The study data comprised 571 listings in the Riverside-San Bernardino-Ontario, CA metro area. Many of the businesses in the dataset are outside of Riverside, but they are in the area and so are probably representative of Riverside business valuations.
Considerations When Valuing a Business in Riverside, CA
Using the price-to-equity ratios (P/E) of public companies usually is not a good way to value a small company. That's because owning stock in public companies is much less risky than owning a small business. As such, a buyer of a small business will pay much less when buying a small company than the valuation calculation that is based on a public company P/E ratio. This helpful advice on how to value a business comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.
Business Valuations for Riverside, 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 published every quarter. If you find these trends interesting, take a moment to visit BizBuySell.com Insights Report for more information.
Historical Data for Riverside, CA Business Valuations
With respect to local trends in business-for-sale asking prices, here are the median asking prices for businesses in the Riverside-San Bernardino-Ontario, CA metro area for the last 10 quarters.
The chart below shows how median revenue multiples are tracking in the Riverside area, based on BizBuySell.com's quarterly reports.
The table below provides data on how cash flow multiples are trending in the Riverside area, based on BizBuySell.com's quarterly reports.
Flow Multiple
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