Q2 2009 Business Valuation Data

Business Valuations for San Diego, CA

Here's the latest BizBuySell.com San Diego, California business valuation statistics for Second Quarter 2009.

Q2 2009 Business Valuations in San Diego, CA

Based on statistics prepared by BizBuySell.com, San Diego listings for businesses for sale in Q2 2009 had a median asking price of $195,000.

The median ask price for selling businesses was $239,550 in Q2 2008.

Q2 2009 Revenue Multiples In San Diego, CA

In the San Diego-Carlsbad-San Marcos, CA metro area, businesses will usually sell for 0.61 times the selling company's revenues. The data indicates that is 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 $384,000 in Q2 2009.

To put this in perspective, the Q2 2008 revenue multiple was 0.78 and the median revenue for selling businesses was $361,000.

Q2 2009 Cash Flow Multiples In San Diego, 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 San Diego-Carlsbad-San Marcos, CA metro area was 2.70.

BizBuySell.com reports that the median cash flow for San Diego area businesses was $85,000 in Q2 2009. In Q2 2008, cash flow multiples clocked in at 3.14 and the median cash flow was $90,000.

Number of San Diego Businesses for Sale in the Dataset

The study data comprised 343 listings in the San Diego-Carlsbad-San Marcos, CA metro area. As such, some of the businesses used to derive the median valuation might be outside of San Diego, but they are in the area and so are likely representative of San Diego business valuations.

Considerations When Valuing a Business in San Diego, CA

Don't hire somebody who is a financial wizard to calculate your business valuation. When valuing a company, having knowledge of the market that exists during the time you're trying to sell is the best way to value a company. A spreadsheet guru may know how to build a killer financial model, but they won't have access to that kind of business comparables data. This advice on how to value a business comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.

Business Valuations for San Diego, CA 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 additional information.

Historical Data for San Diego, CA Business Valuations

With respect to local trends in business-for-sale asking prices, here are the median asking prices for businesses in the San Diego-Carlsbad-San Marcos, CA metro area for the last 10 quarters.

Quarter
Median Ask
Q1 2007
$200,000
Q2 2007
$195,000
Q3 2007
$195,000
Q4 2007
$195,000
Q1 2008
$220,000
Q2 2008
$239,550
Q3 2008
$220,000
Q4 2008
$199,750
Q1 2009
$199,000
Q2 2009
$195,000

The chart below shows how median revenue multiples are changing in the San Diego area, based on BizBuySell.com's quarterly reports.

Quarter
Revenue Multiple
Q1 2007
0.83
Q2 2007
0.73
Q3 2007
0.83
Q4 2007
0.76
Q1 2008
0.76
Q2 2008
0.78
Q3 2008
0.73
Q4 2008
0.69
Q1 2009
0.64
Q2 2009
0.61

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

Quarter
Median Cash
Flow Multiple
Q1 2007
3.14
Q2 2007
3.15
Q3 2007
3.35
Q4 2007
3.13
Q1 2008
3.08
Q2 2008
3.14
Q3 2008
2.94
Q4 2008
2.77
Q1 2009
2.69
Q2 2009
2.70

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