Q3 2009 Business Valuation Data
Sell My Cleveland, OH Business
We just received the latest Cleveland, Ohio business-for-sale statistics.
Median Ask Prices for Cleveland, OH Businesses
If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Cleveland-Elyria-Mentor, OH metro area for the last 11 quarters.
As you can see from the chart above, Cleveland business-for-sale listings in Q3 2009 had a median asking price of $190,000.
That compares to a median ask price of $180,000 in Q3 2008. Because the median ask price for businesses for sale in Cleveland has risen year over year, we can conclude that many smaller firms in Cleveland are holding off on selling.
Revenue Multiples for Cleveland, OH Businesses
Here is how median revenue multiples are trending in the Cleveland area, based on BizBuySell.com's data.
In the Cleveland-Elyria-Mentor, OH metro area, companies will typically sell for 0.67 times the selling company's revenues. The data from BizBuySell.com indicates that is the mean revenue multiple for Q3 2009 in this area of the country.
In other words, a business that has revenues of $150,000 might list for $101,026. Remember, however, that this is just an average for revenue multiples in Cleveland and surrounding communities. Some firms will have higher revenue multiples and others will have lower revenue multiples.
According to BizBuySell.com, the median revenues for its Cleveland business-for-sale listings was $323,037 in Q3 2009.
To put this in perspective, the Q3 2008 revenue multiple was 0.77 and the median revenue for listed Cleveland businesses was $311,582.
Cash Flow Multiples for Cleveland, OH Businesses
The table below shows how cash flow multiples are trending in the Cleveland area, based on BizBuySell.com's quarterly reports.
Flow Multiple
As you probably know, cash flow multiples are another common way to value a business.
For Q3 2009, the average cash flow multiple for listed businesses in the Cleveland-Elyria-Mentor, OH metro area was 3.15.
So, a company with cash flows of $110,000 might list for $346,199. That's only if the firm complies with the local average. Actual cash flow multiples are based on business specifics.
If you are interested in what cash flows are for a business in Cleveland, BizBuySell.com reports that the median cash flow for Cleveland area businesses was $64,128 in Q3 2009. In Q3 2008, Cleveland cash flow multiples averaged 3.46 and the median cash flow was $72,000.
Number of Cleveland Businesses for Sale in the Dataset
The study data comprised 78 listings in the Cleveland-Elyria-Mentor, OH metro area. As such, some of the businesses used to derive the median valuation might be outside of Cleveland, but they are nearby and so are probably representative of Cleveland business valuations.
One year ago, in Q3 2008, the BizBuySell.com dataset for Cleveland spanned 109 listings. In a market where you would think fewer business owners would be selling it's a bit surprising to see more Cleveland business-for-sale listings.
Can I Sell My Cleveland, OH Business Now?
Any business can be sold at any time. For example, a recent business-for-sale listing with flat sales over the past two years and slightly fluctuating cash flows was able to get five offers. With the right team helping you to sell a business, you can without a doubt arrive at an attractive business exit for the owner. This helpful business selling tip comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.
Business Valuations for Cleveland, OH Businesses
If you are considering buying a business or selling a business and would like to look at completed transaction sale price comparables in the area, we recommend the BizBuySell.com Business Valuation Tool. Based on your specific criteria, you can modify the company dataset that creates business valuation estimates. Access to the tool is very reasonable -- costing less than $100.
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.
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