Buying a Business
Cost to Buy a Business in Paradise
If you want to buy a business in Paradise, Nevada, you're no doubt wondering how much a typical Paradise, Nevada business costs to buy.
Fortunately, the folks at BizBuySell.com have made some data available on what it costs to buy a business in Paradise.
BizBuySell.com is the biggest business-for-sale listings site on the Internet, offering over 50,000 businesses for sale at any given time. 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 Nevada, check out the BizBuySell Nevada listings to see the latest business-for-sale listings for Paradise and other Nevada municipalities.
Business Valuations in Paradise, NV
Based on the BizBuySell.com data, the median asking price for an Paradise business-for-sale listing in Q4 2008, the quarter when they most recently released their data, was $216,000.
That was based on 426 listings in the Las Vegas-Paradise, NV metro area. Many of the businesses in the dataset are outside of Paradise, but they are in the area and so are likely representative of Paradise 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 Paradise business for much less. At the same time, some Paradise businesses may cost much more.
Importantly, this is the asking price for an Paradise business. Typically, when a business 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 Las Vegas-Paradise, NV metro area for the last 8 quarters.
Revenue Multiples In Paradise, NV
In the Las Vegas-Paradise, NV metro area, businesses will typically sell for 0.83 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 $165,408. Keep in mind 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 trending in the Paradise area, based on BizBuySell.com's quarterly reports.
According to BizBuySell.com, the median revenues for its business-for-sale listings was $377,330 in Q4 2008.
Cash Flow Multiples In Paradise, NV
Another useful technique to value a business is through cash flow multiples.
For Q4 2008, the average cash flow multiple for listed businesses in the Las Vegas-Paradise, NV metro area was 3.20.
So, a business with cash flows of $120,000 might have an asking price of $384,478. That's if the business fits the area average. Cash flow multiples can vary considerably based on many factors.
The table below shows how cash flow multiples are trending in the Paradise area, based on BizBuySell.com's quarterly reports.
Flow Multiple
In case you were wondering what typical cash flows are for a business in Paradise, BizBuySell.com found that the median cash flow for Paradise area businesses was $101,676 in Q4 2008.
Things to Consider When Buying a Business in Paradise, NV
Many buyers want to look at all available options, thinking they'll recognize what they're looking for when they see it. That approach is actually a waste of valuable time and energy and can lead to frustration. A better strategy is to define what you are looking for and then only look at businesses that meet your criteria. This useful business buying advice comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.
Business Valuations for Paradise, NV 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.
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