Q1 2009 Costs to Buy a Business

How Much Is My Camden Business Worth?

We just received the latest Camden, New Jersey business-for-sale statistics.

Q1 2009 Business Valuations in Camden, NJ

According to statistics issued by BizBuySell.com, Camden business-for-sale listings in Q1 2009 had a median asking price of $290,000.

That compares to a median ask price of $250,000 in Q1 2008. Since the median ask price for businesses for sale in Camden has gone up year over year, we can conclude that many smaller businesses in Camden are putting off selling.

Please understand that this is the median asking price for a business. If you want to buy a business, you may be able to buy a Camden company for much less. However, some Camden businesses may be selling for much more.

Another thing to remember is that this is the asking price for a Camden business. When an entrepreneur lists a business for sale, they typically set a price that ends up being more than the eventual sale price. A sale-to-ask ratio typically might be between 0.85 and 0.90, but of course it varies considerably. So, a business listed for $100,000 might sell for between $85,000 and $90,000.

Number of Camden Businesses for Sale in the Dataset

The study data comprised 931 listings in the Philadelphia-Camden-Wilmington, PA-NJ-DE-MD metro area. Many of the businesses in the dataset are outside of Camden, but they are in the area and so are likely representative of Camden business valuations.

One year ago, in Q1 2008, the BizBuySell.com dataset for Camden spanned 963 listings. The downward trend in the number of Camden business-for-sale listings is indicative of the current down economy.

Camden, NJ Q1 2009 Revenue Multiples

In the Philadelphia-Camden-Wilmington, PA-NJ-DE-MD metro area, small businesses will typically sell for 0.87 times the selling company's revenues. That was the mean revenue multiple for Q1 2009 in this area of the country.

In other words, a business that has revenues of $200,000 might list for $174,719. Remember, however, that this is in fact an average for revenue multiples in the area. Some firms will have higher revenue multiples and others will have lower revenue multiples.

According to BizBuySell.com, the median revenues for its business-for-sale listings was $438,520 in Q1 2009.

As a reference point, the Q1 2008 revenue multiple was 0.87 and the median revenue for listed businesses was $375,000.

Q1 2009 Cash Flow Multiples In Camden, NJ

Cash flow multiples are another useful method to value a business.

For Q1 2009, the average cash flow multiple for listed businesses in the Philadelphia-Camden-Wilmington, PA-NJ-DE-MD metro area was 3.32.

So, a business with cash flows of $150,000 might have an asking price of $498,133. That's only if the firm complies with the local average. The actual distribution on revenue multiples for a given set of businesses can be quite wide-ranging.

If you are interested in what cash flows are for a business in Camden, BizBuySell.com reports that the median cash flow for Camden area businesses was $110,000 in Q1 2009. In Q1 2008, cash flow multiples clocked in at 3.22 and the median cash flow was $100,000.

Tips for Camden, NJ Business Sellers

Selling a business can be a full-time job in and of itself. If you sell on your own, without assistance from a business broker, you may be distracted from running the business, which can result in a deterioriation in business results and a lower sale price. This helpful advice was provided by Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.

Business Valuations for Camden, NJ Businesses

If you are contemplating buying a business or selling a business and would like to look at comparables in the area, we suggest you try the BizBuySell.com Business Valuation Tool. You can modify the dataset that creates business valuation estimates to meet your specific criteria. As a bonus, 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 report that tracks trends in the business-for-sale marketplace. If you find these trends interesting, take a moment to visit BizBuySell.com Insights Report for additional information.

Historical Data for Camden, NJ Business Valuations

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Philadelphia-Camden-Wilmington, PA-NJ-DE-MD metro area for the last 9 quarters.

Quarter
Median Ask
Q1 2007
$225,000
Q2 2007
$225,000
Q3 2007
$246,950
Q4 2007
$250,000
Q1 2008
$250,000
Q2 2008
$260,000
Q3 2008
$260,000
Q4 2008
$275,000
Q1 2009
$290,000

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

Quarter
Revenue Multiple
Q1 2007
0.81
Q2 2007
0.79
Q3 2007
0.85
Q4 2007
0.83
Q1 2008
0.87
Q2 2008
0.91
Q3 2008
0.89
Q4 2008
0.90
Q1 2009
0.87

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

Quarter
Median Cash
Flow Multiple
Q1 2007
3.14
Q2 2007
3.03
Q3 2007
3.14
Q4 2007
3.16
Q1 2008
3.22
Q2 2008
3.41
Q3 2008
3.31
Q4 2008
3.31
Q1 2009
3.32

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