Fortunately, the team at BizBuySell.com has made some data available on what businesses are going for in Arden-Arcade.

BizBuySell.com is the largest online marketplace for business-for-sale transactions. When a business broker in a local city has a listing, the broker will typically post it on BizBuySell.com. In addition, many business owners who are selling on their own, without a broker, will place listings on BizBuySell.com.

If you are looking to buy a business in California, check out the BizBuySell California listings to see the latest business-for-sale listings for Arden-Arcade and other California cities.

Business Valuations in Arden-Arcade, CA

According to BizBuySell.com, the median asking price for an Arden-Arcade business-for-sale listing in Q4 2008, the quarter when they most recently released their data, was $229,450.

That was based on 200 listings in the Sacramento--Arden-Arcade--Roseville, CA metro area. Many of the businesses in the dataset are outside of Arden-Arcade, but they are in the area and so are probably representative of Arden-Arcade business valuations.

Remember that this is the median asking price for a business. If you are in the market to buy a company, you may be able to buy an Arden-Arcade business for much less. At the same time, some Arden-Arcade businesses may cost much more.

Another thing you should know is that this is the asking price for an Arden-Arcade business. Typically, when a business owner lists a business for sale, they start with an asking price that is higher than the contracted sale price. The sale-price-to-asking-price ratios depend on deal specifics but typically might be between 0.85 and 0.90. For example, a business listed for $250,000 would go for between $212,500 and $225,000.

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Sacramento--Arden-Arcade--Roseville, CA metro area for the last 8 quarters.

Revenue Multiples In Arden-Arcade, CA

In the Sacramento--Arden-Arcade--Roseville, CA metro area, businesses will typically sell for 0.72 times the selling company's revenues. That was the mean revenue multiple for Q4 2008 in this area of the country.

In other words, a business that has revenues of $200,000 might list for $143,948. Remember, however, that this is just an average for revenue multiples in the area. Some firms will have higher revenue multiples and others will have lower revenue multiples.

Here is how median revenue multiples are tracking in the Arden-Arcade area, based on BizBuySell.com's economic data.

According to BizBuySell.com, the median revenues for its business-for-sale listings was $470,000 in Q4 2008.

Cash Flow Multiples In Arden-Arcade, CA

Another popular way to value a business is through cash flow multiples.

For Q4 2008, the average cash flow multiple for listed businesses in the Sacramento--Arden-Arcade--Roseville, CA metro area was 3.24.

So, a business with cash flows of $120,000 might have an asking price of $388,408. That math only works if the business sells for the area's average multiple. Most businesses will not conform to industry- or area averages.

The table below shows how cash flow multiples are trending in the Arden-Arcade area, based on BizBuySell.com's quarterly reports.

If you are interested in what cash flows are for a business in Arden-Arcade, BizBuySell.com reports that the median cash flow for Arden-Arcade area businesses was $99,500 in Q4 2008.

Things to Consider When Buying a Business in Arden-Arcade, CA

When buying a business, always start with a self assessment. Ask yourself why you want to buy a business. What types of work activities do you like and what kind of lifestyle do you want to pursue? Be sure to include your family in the assessment. This helpful tip comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Arden-Arcade, CA Businesses

If you have a specific business in mind and want to look at comparables in the area, we recommend the BizBuySell.com Business Valuation Tool. You can refine the dataset that generates business valuations to meet your specific needs, and access to the tool is very affordable -- less than $100.

More Information on BizBuySell.com's Quarterly Reports

The BizBuySell Insight Report is published on a quarterly basis. If you find this data interesting, be sure to visit BizBuySell.com Insights Report for more information.

Members of the media who are looking for subject matter experts on buying a business, selling a business, business-for-sale valuation trends and other topics should contact Frank Krolicki of PR firm Walker Sands Communications at 312-546-4127. Frank can coordinate interviews with the appropriate executives at either BizBuySell.com or Chicagoland Sunbelt.