The good news is a company called BizBuySell.com has made some data available on what businesses are going for in Dayton.

BizBuySell.com is the largest online marketplace for business-for-sale transactions. Their listings include almost all of the available listings from business brokers nationwide. In addition, many business owners who are selling on their own, without a broker, will place listings on BizBuySell.com.

If you want to buy a company in Ohio, check out the BizBuySell Ohio listings to to be on the inside track with the newest business-for-sale listings for Dayton and other Ohio cities.

Business Valuations in Dayton, OH

According to BizBuySell.com, the median asking price for an Dayton business-for-sale listing in Q4 2008, the quarter when they most recently released their data, was $395,000.

That was based on 73 listings in the Dayton, OH metro area. As such, some of the businesses used to derive the median valuation might be outside of Dayton, but they are in the area and so are probably representative of Dayton 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 Dayton business for much less. Having said that, some Dayton businesses may cost much more.

Importantly, this is the asking price for an Dayton business. Typically, when a company owner lists a business for sale, they start with an asking price that is higher than the eventual sale price. The sale-price-to-asking-price ratio varies considerably but typically might be between 0.85 and 0.90. In other words, a business listed for $100,000 might sell for between $85,000 and $90,000.

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Dayton, OH metro area for the last 8 quarters.

Revenue Multiples In Dayton, OH

In the Dayton, OH metro area, small businesses will typically sell for 1.00 times the selling company's revenues. This was the mean revenue multiple for Q4 2008 in this metro area.

In other words, a business that has revenues of $200,000 might list for $200,250. Remember, however, that this is strictly 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 changing in the Dayton area, based on BizBuySell.com's quarterly reports.

According to BizBuySell.com, the median revenues for its business-for-sale listings was $480,000 in Q4 2008.

Cash Flow Multiples In Dayton, OH

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 Dayton, OH metro area was 4.17.

So, a business with cash flows of $120,000 might have an asking price of $499,949. 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 Dayton area, based on BizBuySell.com's quarterly reports.

In case you were wondering what typical cash flows are for a business in Dayton, BizBuySell.com reports that the median cash flow for Dayton area businesses was $100,000 in Q4 2008.

Tips for Dayton, OH Business Buyers

Before you start the process of buying a business, line up a team of professional advisors. Alert your attorney, accountant and financial advisors that you are looking for a business to buy. This good advice comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Dayton, OH 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 interested in writing stories 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.