Buying a Business

Cost to Buy a Business in Beaverton

Considering purchasing a company in Beaverton, Oregon? You're no doubt wondering how much a typical Beaverton, Oregon business costs to buy.

Fortunately, the folks at BizBuySell.com have made some data available on what it costs to buy a business in Beaverton.

BizBuySell.com is the largest online marketplace for business-for-sale transactions. The vast majority of business brokers in the country put their business listings 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 Oregon, check out the BizBuySell Oregon listings to get instant access to business-for-sale listings for Beaverton and other Oregon towns.

Business Valuations in Beaverton, OR

Based on the BizBuySell.com data, the median asking price for an Beaverton business-for-sale listing in Q4 2008, the quarter when they most recently released their data, was $289,500.

That was based on 199 listings in the Portland-Vancouver-Beaverton, OR-WA metro area. Many of the businesses in the dataset are outside of Beaverton, but they are in the area and so are likely representative of Beaverton business valuations.

Note 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 Beaverton business for much less. At the same time, some Beaverton businesses may cost much more.

Another thing you should know is that this is the asking price for an Beaverton business. Typically, when a small business owner lists a company for sale, they start with an asking price that is higher than the final sale price. The sale-price-to-asking-price ratios depend on deal specifics but typically might be between 0.85 and 0.90. Based on this rule of thumb, a business listed for $225,000 might sell for between $191,250 and $202,500.

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Portland-Vancouver-Beaverton, OR-WA metro area for the last 8 quarters.

Quarter
Median Ask
Q1 2007
$189,500
Q2 2007
$202,500
Q3 2007
$299,000
Q4 2007
$315,000
Q1 2008
$290,000
Q2 2008
$275,000
Q3 2008
$275,000
Q4 2008
$289,500

Revenue Multiples In Beaverton, OR

In the Portland-Vancouver-Beaverton, OR-WA metro area, businesses will typically sell for 0.83 times the selling company's revenues. This 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 $166,030. 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 trending in the Beaverton area, based on BizBuySell.com's data.

Quarter
Revenue Multiple
Q1 2007
0.68
Q2 2007
0.76
Q3 2007
0.88
Q4 2007
0.83
Q1 2008
0.82
Q2 2008
0.92
Q3 2008
0.96
Q4 2008
0.83

According to BizBuySell.com, the median revenues for its business-for-sale listings was $436,000 in Q4 2008.

Cash Flow Multiples In Beaverton, OR

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 Portland-Vancouver-Beaverton, OR-WA metro area was 3.47.

So, a business with cash flows of $120,000 might have an asking price of $415,881. That's if the business fits the area average. Actual cash flow multiples are based on business specifics.

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

Quarter
Median Cash
Flow Multiple
Q1 2007
3.30
Q2 2007
3.42
Q3 2007
3.74
Q4 2007
3.91
Q1 2008
3.65
Q2 2008
3.99
Q3 2008
3.84
Q4 2008
3.47

If you are interested in what cash flows are for a business in Beaverton, BizBuySell.com reports that the median cash flow for Beaverton area businesses was $100,000 in Q4 2008.

Things to Consider When Buying a Business in Beaverton, OR

It is important to keep in mind that no business is perfect. It is not unusual for buyers to find a few inconsistencies or anomalies in a business when they get to the due diligence stage. These should be questioned and understood. If the information turns out to be structural or material, then you may consider either canceling a deal or renegotiating a deal based on the new facts. However, be careful not to over-react and assume that any deviation is a deal-killer. Oftentimes, these differences can be explained and overcome with thoughtful communication between all the parties. This good business buying tip comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Beaverton, OR 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 additional information.

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