Q3 2009 Business Valuation Data
Sell My Sugar Land, TX Business
Every quarter, BizBuySell.com publishes business valuation data, and we now have their latest Sugar Land, Texas small business valuation trend data for Third Quarter 2009.
Median Ask Prices for Sugar Land, TX Businesses
If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Houston-Sugar Land-Baytown, TX metro area for the last 11 quarters.
As you can see from the chart above, Sugar Land business-for-sale listings in Q3 2009 had a median asking price of $275,000.
That compares to a median ask price of $250,000 in Q3 2008. Because the median ask price for businesses for sale in Sugar Land has risen year over year, we can conclude that many smaller firms in Sugar Land are holding off on selling.
Revenue Multiples for Sugar Land, TX Businesses
Here is how median revenue multiples are trending in the Sugar Land area, based on BizBuySell.com's data.
In the Houston-Sugar Land-Baytown, TX metro area, small companies will typically sell for 0.96 times the selling company's revenues. As shown in the chart above, that was 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 $144,645. Keep in mind that this is just an average for revenue multiples in Sugar Land and surrounding communities. Some entities will have higher revenue multiples and others will have lower revenue multiples.
According to BizBuySell.com, the median revenues for its Sugar Land business-for-sale listings was $420,000 in Q3 2009.
To put this in perspective, the Q3 2008 revenue multiple was 1.04 and the median revenue for listed Sugar Land businesses was $360,000.
Cash Flow Multiples for Sugar Land, TX Businesses
The table below shows how cash flow multiples are trending in the Sugar Land 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 Houston-Sugar Land-Baytown, TX metro area was 3.49.
So, a firm with cash flows of $110,000 might list for $384,406. That calculation is dependent on the business selling for the area's average multiple. Most businesses will not conform to industry- or area averages.
If you are interested in what cash flows are for a business in Sugar Land, BizBuySell.com found that the median cash flow for Sugar Land area businesses was $105,000 in Q3 2009. In Q3 2008, Sugar Land cash flow multiples averaged 3.61 and the median cash flow was $96,640.
Number of Sugar Land Businesses for Sale in the Dataset
The study data comprised 483 listings in the Houston-Sugar Land-Baytown, TX metro area. As such, some of the businesses used to derive the median valuation might be outside of Sugar Land, but they are nearby and so are likely representative of Sugar Land business valuations.
One year ago, in Q3 2008, the BizBuySell.com dataset for Sugar Land spanned 577 listings. The downward trend in the number of Sugar Land business-for-sale listings is indicative of the current down economy.
Should I Sell My Sugar Land, TX Business Now?
You can sell a business in any market if you know what you are doing. If you wait for the perfect time to sell a business, you may find that that perfect time never comes. This advice comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.
Business Valuations for Sugar Land, TX 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 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 published quarterly. If you find these trends interesting, take a moment to visit BizBuySell.com Insights Report for additional information.
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