Q3 2009 Business Valuation Data

Sell My Oklahoma City, OK Business

We just received the latest Oklahoma City, Oklahoma business valuation data for Third Quarter 2009.

Median Ask Prices for Oklahoma City, OK Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for companies in the Oklahoma City, OK metro area for the last 11 quarters.

Quarter
Median Ask
Q1 2007
$250,000
Q2 2007
$275,000
Q3 2007
$290,000
Q4 2007
$340,000
Q1 2008
$300,000
Q2 2008
$337,500
Q3 2008
$275,000
Q4 2008
$249,000
Q1 2009
$248,250
Q2 2009
$239,000
Q3 2009
$210,000

As shown in the table, Oklahoma City business-for-sale listings in Q3 2009 had a median asking price of $210,000.

That compares to a median ask price of $275,000 in Q3 2008. The lower median asking price in last quarter suggests that Oklahoma City, OK sellers are dropping their asking prices in light of market conditions. This is making it possible for more business-for-sale transactions to close.

Revenue Multiples for Oklahoma City, OK Businesses

Here is how median revenue multiples are trending in the Oklahoma City area, based on BizBuySell.com's economic data.

Quarter
Revenue Multiple
Q1 2007
1.07
Q2 2007
1.03
Q3 2007
1.21
Q4 2007
1.26
Q1 2008
1.23
Q2 2008
1.09
Q3 2008
1.00
Q4 2008
0.96
Q1 2009
0.94
Q2 2009
0.95
Q3 2009
1.00

In the Oklahoma City, OK metro area, small companies will typically sell for 1.00 times the selling company's revenues. As shown in the chart above, that was the mean revenue multiple for Q3 2009 in this metro area.

In other words, a business that has revenues of $150,000 might list for $150,225. Keep in mind that this is strictly an average for revenue multiples in Oklahoma City 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 Oklahoma City business-for-sale listings was $364,000 in Q3 2009.

To put this in perspective, the Q3 2008 revenue multiple was 1.00 and the median revenue for listed Oklahoma City businesses was $380,000.

Cash Flow Multiples for Oklahoma City, OK Businesses

Here is how cash flow multiples are trending in the Oklahoma City area, based on BizBuySell.com's quarterly reports.

Quarter
Median Cash
Flow Multiple
Q1 2007
3.74
Q2 2007
3.84
Q3 2007
3.77
Q4 2007
4.01
Q1 2008
3.94
Q2 2008
3.88
Q3 2008
3.54
Q4 2008
3.43
Q1 2009
3.42
Q2 2009
3.58
Q3 2009
3.49

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 Oklahoma City, OK metro area was 3.49.

So, a business with cash flows of $110,000 might list for $383,564. That calculation is dependent on the business selling for the area's average multiple. The actual distribution on cash flow multiples for a given set of businesses can be quite wide-ranging.

If you are interested in what cash flows are for a business in Oklahoma City, BizBuySell.com reports that the median cash flow for Oklahoma City area businesses was $85,000 in Q3 2009. In Q3 2008, Oklahoma City cash flow multiples averaged 3.54 and the median cash flow was $100,000.

Number of Oklahoma City Businesses for Sale in the Dataset

The study data comprised 109 listings in the Oklahoma City, OK metro area. As such, some of the businesses used to derive the median valuation might be outside of Oklahoma City, but they are in the area and so are probably representative of Oklahoma City business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for Oklahoma City spanned 107 listings. In a market where you would think fewer business owners would be selling, it's a bit surprising to see more Oklahoma City business-for-sale listings.

Can I Sell My Oklahoma City, OK Business Now?

The decision to sell now or wait until later should be based on your own personal circumstances and your business's circumstances. A short consultation with a business broker can help you determine whether now is the right time to sell. This useful tip comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.

Business Valuations for Oklahoma City, OK Businesses

If you are contemplating buying a business or selling a business and would like to look at completed transaction sale price comparables in the area, we suggest you try 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 published quarterly. If you find these trends interesting, take a moment to visit BizBuySell.com Insights Report for more information.

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