Q2 2009 Business Valuation Data
Business Valuations for Washington, DC
BizBuySell.com has published its latest business valuation data, including Washington, District of Columbia small company business valuation data for Second Quarter 2009.
Washington, DC Q2 2009 Business Valuations
According to the latest data compiled by BizBuySell.com, Washington listings for businesses for sale in Q2 2009 had a median asking price of $250,000.
The median ask price for selling businesses was $250,000 in Q2 2008.
Washington, DC Q2 2009 Revenue Multiples
In the Washington-Arlington-Alexandria, DC-VA-MD-WV metro area, businesses will on average sell for 0.74 times the selling company's revenues. This was the mean revenue multiple for Q2 2009 in this area of the country.
According to the latest BizBuySell.com data, the median revenue for its listed businesses was $440,000 in Q2 2009.
To put this in perspective, the Q2 2008 revenue multiple was 0.70 and the median revenue for selling businesses was $436,500.
Q2 2009 Cash Flow Multiples In Washington, DC
Cash flow multiples are a common way to value a business.
For Q2 2009, the average cash flow multiple for listed businesses in the Washington-Arlington-Alexandria, DC-VA-MD-WV metro area was 2.95.
BizBuySell.com found that the median cash flow for Washington area businesses was $100,000 in Q2 2009. In Q2 2008, cash flow multiples clocked in at 3.02 and the median cash flow was $100,000.
Number of Washington Businesses for Sale in the Dataset
The study data comprised 727 listings in the Washington-Arlington-Alexandria, DC-VA-MD-WV metro area. As such, some of the businesses used to derive the median valuation might be outside of Washington, but they are in the area and so are likely representative of Washington business valuations.
Considerations When Valuing a Business in Washington, DC
Some of the most popular business valuation methods are based on the market price for similar companies that are selling in the same timeframe. However, if it is warranted, the unique characteristics of a business may lead a valuation expert to calculate a company valuation that is radically different from peer company valuations. This good advice comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.
Business Valuations for Washington, DC Businesses
If you are contemplating buying a business or selling a business and would like to get an estimated business valuation, we suggest you try the BizBuySell.com Business Valuation Tool. You can modify the dataset that creates business valuation estimates to meet your specific criteria. As a bonus, access to the tool is very affordable -- less than $100.
More Information on 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.
Historical Data for Washington, DC Business Valuations
With respect to local trends in business-for-sale asking prices, here are the median asking prices for businesses in the Washington-Arlington-Alexandria, DC-VA-MD-WV metro area for the last 10 quarters.
The chart below shows how median revenue multiples are tracking in the Washington area, based on BizBuySell.com's quarterly reports.
The table below provides data on how cash flow multiples are trending in the Washington area, based on BizBuySell.com's quarterly reports.
Flow Multiple
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