Q2 2009 Business Valuation Data
Business Valuations for San Francisco, CA
Recently, BizBuySell.com released its latest San Francisco, California small company business valuation data for Second Quarter 2009.
Q2 2009 Business Valuations in San Francisco, CA
Based on statistics prepared by BizBuySell.com, San Francisco listings for businesses for sale in Q2 2009 had a median asking price of $245,000.
The median ask price for selling businesses was $279,000 in Q2 2008.
San Francisco, CA Q2 2009 Revenue Multiples
In the San Francisco-Oakland-Fremont, CA metro area, businesses will usually sell for 0.70 times the selling company's revenues. The data indicates that is the mean revenue multiple for Q2 2009 in this metro area.
According to the latest BizBuySell.com data, the median revenue for its listed businesses was $442,805 in Q2 2009.
To put this in perspective, the Q2 2008 revenue multiple was 0.77 and the median revenue for selling businesses was $480,212.
Q2 2009 Cash Flow Multiples In San Francisco, CA
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 San Francisco-Oakland-Fremont, CA metro area was 3.05.
BizBuySell.com reports that the median cash flow for San Francisco area businesses was $97,434 in Q2 2009. In Q2 2008, cash flow multiples clocked in at 3.35 and the median cash flow was $102,000.
Number of San Francisco Businesses for Sale in the Dataset
The study data comprised 289 listings in the San Francisco-Oakland-Fremont, CA metro area. As such, some of the businesses used to derive the median valuation might be outside of San Francisco, but they are in the area and so are probably representative of San Francisco business valuations.
Considerations When Valuing a Business in San Francisco, CA
Long before you want to sell a business, it's a good idea to hire a business valuation consultant to get a feel for what a business is worth. By doing this, you'll learn how to value a business and will identify many improvements you can make to improve the valuation for your business. This good valuing-a-business tip comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.
Business Valuations for San Francisco, 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 published every quarter. If you find these trends interesting, take a moment to visit BizBuySell.com Insights Report for more information.
Historical Data for San Francisco, CA Business Valuations
With respect to local trends in business-for-sale asking prices, here are the median asking prices for businesses for sale in the San Francisco-Oakland-Fremont, CA metro area for the last 10 quarters.
The chart below shows how median revenue multiples are tracking in the San Francisco area, based on BizBuySell.com's economic data.
Here is how cash flow multiples are trending in the San Francisco area, based on BizBuySell.com's quarterly reports.
Flow Multiple
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