The good news is the folks at BizBuySell.com have made some data available on what it costs to buy a business in Naperville.

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 want to buy a company in Illinois, take a look at the BizBuySell Illinois listings to to be on the inside track with the newest business-for-sale listings for Naperville and other Illinois municipalities.

Business Valuations in Naperville, IL

Based on the BizBuySell.com data, the median asking price for an Naperville business-for-sale listing in Q4 2008, the quarter when they most recently released their data, was $275,000.

That was based on 580 listings in the Chicago-Naperville-Joliet, IL-IN-WI metro area. Many of the businesses in the dataset are outside of Naperville, but they are close by and so are probably representative of Naperville 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 Naperville business for much less. At the same time, some Naperville businesses may cost much more.

Importantly, this is the asking price for an Naperville business. Typically, when an owner lists a company for sale, they start with an asking price that is higher than the ultimate 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 Chicago-Naperville-Joliet, IL-IN-WI metro area for the last 8 quarters.

Naperville, IL Revenue Multiples

In the Chicago-Naperville-Joliet, IL-IN-WI metro area, businesses will usually sell for 0.80 times the selling company's revenues. The data indicates that is 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 $159,279. Remember, however, that this is just an average for revenue multiples in Naperville and surrounding communities. Some firms will have higher revenue multiples and others will have lower revenue multiples.

Here is how median revenue multiples are trending in the Naperville area, based on BizBuySell.com's economic data.

According to BizBuySell.com, the median revenues for its business-for-sale listings was $443,836 in Q4 2008.

Cash Flow Multiples In Naperville, IL

Another common method to value a business is through cash flow multiples.

For Q4 2008, the average cash flow multiple for listed businesses in the Chicago-Naperville-Joliet, IL-IN-WI metro area was 3.23.

So, a business with cash flows of $120,000 might have an asking price of $388,092. That's if the business fits the area average. Actual cash flow multiples can vary considerably from one business to another.

Here is how cash flow multiples are trending in the Naperville area, based on BizBuySell.com's quarterly reports.

If you are interested in what cash flows are for a business in Naperville, BizBuySell.com reports that the median cash flow for Naperville area businesses was $99,885 in Q4 2008.

Things to Consider When Buying a Business in Naperville, IL

Sellers want to be sure their business will continue to be successful. They want to find a buyer who has experience and will take care of the company's employees. As such, you are selling yourself to the current business owner and the professional team that represents the seller. You may think you are buying, but you also need to be selling. This useful tip for buying a business was provided by Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Naperville, IL 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 a nationally-recognized economic indicator that tracks the health of the U.S. small business economy. 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 senior management at either BizBuySell.com or Chicagoland Sunbelt.