Q3 2009 Business Valuation Data
Sell My Stamford, CT Business
Every quarter, BizBuySell.com publishes business valuation data, and we now have their latest Stamford, Connecticut business-for-sale statistics.
Median Ask Prices for Stamford, CT Businesses
If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Bridgeport-Stamford-Norwalk, CT metro area for the last 11 quarters.
As shown in the table, Stamford business-for-sale listings in Q3 2009 had a median asking price of $255,000.
That compares to a median ask price of $249,998 in Q3 2008. Since the median ask price for businesses for sale in Stamford has gone up year over year, we can conclude that many smaller businesses in Stamford are putting off selling.
Revenue Multiples for Stamford, CT Businesses
Here is how median revenue multiples are trending in the Stamford area, based on BizBuySell.com's quarterly reports.
In the Bridgeport-Stamford-Norwalk, CT metro area, businesses will typically sell for 0.86 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 firm with revenues of $150,000 might list for $128,918. Keep in mind that this is just an average for revenue multiples in Stamford and surrounding communities. Some companies will have higher revenue multiples and others will have lower revenue multiples.
According to BizBuySell.com, the median revenues for its Stamford business-for-sale listings was $416,000 in Q3 2009.
As a reference point, the Q3 2008 revenue multiple was 0.73 and the median revenue for listed Stamford businesses was $400,720.
Cash Flow Multiples for Stamford, CT Businesses
The table below shows how cash flow multiples are trending in the Stamford 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 Bridgeport-Stamford-Norwalk, CT metro area was 2.93.
So, a business with cash flows of $110,000 might list for $322,226. That calculation is dependent on the business selling for the area's average multiple. In practice, cash flow multiples can vary considerably from one business type to another.
If you are interested in what cash flows are for a business in Stamford, BizBuySell.com reports that the median cash flow for Stamford area businesses was $100,000 in Q3 2009. In Q3 2008, Stamford cash flow multiples averaged 2.79 and the median cash flow was $98,080.
Number of Stamford Businesses for Sale in the Dataset
The study data comprised 151 listings in the Bridgeport-Stamford-Norwalk, CT metro area. Many of the businesses in the dataset are outside of Stamford, but they are in the area and so are likely representative of Stamford business valuations.
One year ago, in Q3 2008, the BizBuySell.com dataset for Stamford spanned 194 listings. The downward trend in the number of Stamford business-for-sale listings is indicative of the current down economy.
Can I Sell My Stamford, CT Business Now?
If you are trying to decide if this is a good time to sell a business, hire a third-party business appraisal firm to determine a business valuation for the company. This exercise should give you much better insights on whether it's a good time to sell or not. A consultation with a qualified business broker will also be very helpful to you. This useful business selling advice comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.
Business Valuations for Stamford, CT Businesses
If you are contemplating buying a business or selling a business and would like to determine how much a business is worth, 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 additional information.
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