Q3 2009 Business Valuation Data
Sell My Naperville, IL Business
BizBuySell.com has just released its Naperville, Illinois small business valuation trend data for Third Quarter 2009.
Median Ask Prices for Naperville, IL Businesses
If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Chicago-Naperville-Joliet, IL-IN-WI metro area for the last 11 quarters.
As shown in the table, Naperville business-for-sale listings in Q3 2009 had a median asking price of $250,000.
That compares to a median ask price of $292,000 in Q3 2008. Given that Naperville, IL median business asking prices appear to be dropping, it suggests that selling Naperville businesses may be lowering their prices to make their businesses more attractive to buyers.
Revenue Multiples for Naperville, IL Businesses
Here is how median revenue multiples are changing in the Naperville area, based on BizBuySell.com's data.
In the Chicago-Naperville-Joliet, IL-IN-WI metro area, small companies will typically sell for 0.82 times the selling company's revenues. As shown in the chart above, that was the mean revenue multiple for Q3 2009 in this part of the country.
In other words, a business that has revenues of $150,000 might list for $122,348. Keep in mind that this is just an average for revenue multiples in Naperville 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 Naperville business-for-sale listings was $449,865 in Q3 2009.
To put this in perspective, the Q3 2008 revenue multiple was 0.86 and the median revenue for listed Naperville businesses was $430,000.
Cash Flow Multiples for Naperville, IL Businesses
The table below shows how cash flow multiples are trending in the Naperville area, based on BizBuySell.com's quarterly reports.
Flow Multiple
As you probably know, cash flow multiples are another popular technique to value a business.
For Q3 2009, the average cash flow multiple for listed businesses in the Chicago-Naperville-Joliet, IL-IN-WI metro area was 3.41.
So, a business with cash flows of $110,000 might list for $375,595. That's only if the firm complies with the local average. Cash flow multiples will usually vary considerably based on many factors.
If you are interested in what cash flows are for a business in Naperville, BizBuySell.com reports that the median cash flow for Naperville area businesses was $92,694 in Q3 2009. In Q3 2008, Naperville cash flow multiples averaged 3.42 and the median cash flow was $101,344.
Number of Naperville Businesses for Sale in the Dataset
The study data comprised 535 listings in the Chicago-Naperville-Joliet, IL-IN-WI metro area. As such, some of the businesses used to derive the median valuation might be outside of Naperville, but they are nearby and so are probably representative of Naperville business valuations.
One year ago, in Q3 2008, the BizBuySell.com dataset for Naperville spanned 651 listings. The downward trend in the number of Naperville business-for-sale listings is indicative of the current down economy.
Should I Sell My Naperville, IL Business Now?
As long as you maintain confidentiality while selling a business, there's little harm in putting a business up for sale. Sure, it takes a lot of work, but investing in getting ready to sell now will have a payoff whenever you decide to actually sell. By simply listing a business for sale, and doing it now, you can get a feel for the market. Remember, you can always say no thanks to an offer you don't like. This helpful tip on buying a business comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.
Business Valuations for Naperville, IL 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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