Q1 2009 Business Valuations in Cleveland-OH, OH

Based on data compiled by BizBuySell.com, Cleveland-OH business-for-sale listings in had a median asking price of $0.

That compares to a median ask price of $0 in . Cleveland-OH, OH business values are showing stability even in this tough economic environment.

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 Cleveland-OH company for much less. Similarly, some Cleveland-OH businesses may be selling for much more.

Also, this is the asking price for a Cleveland-OH business. When a company owner lists a company for sale, they typically set a price that ends up being more than the final sale price. A sale-to-ask ratio typically might be between 0.85 and 0.90, but of course it varies considerably. Given this industry statistic, if a small business owner were to list a company for $300,000, it might sell for between $255,000 and $270,000.

Number of Cleveland-OH Businesses for Sale in the Dataset

The study data comprised listings in the metro area. As such, some of the businesses used to derive the median valuation might be outside of Cleveland-OH, but they are in the area and so are probably representative of Cleveland-OH business valuations.

One year ago, in , the BizBuySell.com dataset for Cleveland-OH spanned listings. In a market where you would think fewer business owners would be selling, it's a bit surprising to see the same number of Cleveland-OH business-for-sale listings.

Q1 2009 Revenue Multiples In Cleveland-OH, OH

In the metro area, businesses will usually sell for 0.00 times the selling company's revenues. That was the mean revenue multiple for in this part of the country.

In other words, a business that has revenues of $200,000 might list for $0. Remember, however, that this is strictly an average for revenue multiples in Cleveland-OH and surrounding communities. Some businesses 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 $0 in .

As a reference point, the revenue multiple was 0.00 and the median revenue for listed businesses was $0.

Q1 2009 Cash Flow Multiples In Cleveland-OH, OH

Cash flow multiples are another common way to value a business.

For , the average cash flow multiple for businesses listed in the metro area was 0.00.

So, a business with cash flows of $150,000 might have an asking price of $0. That's only if the firm complies with the local average. Cash flow multiples will usually vary considerably based on many factors.

In case you were wondering what typical cash flows are for a business in Cleveland-OH, BizBuySell.com reports that the median cash flow for Cleveland-OH area businesses was $0 in . In , cash flow multiples clocked in at 0.00 and the median cash flow was $0.

Tips for Cleveland-OH, OH Business Sellers

Competitors tend to pay less for a business than strategic buyers. In most cases, selling out to a competitor should be your exit strategy of last resort (although selling to an employee may get an even lower exit price). This good advice comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Cleveland-OH, OH 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 more information.

Members of the media who are looking for subject matter experts on selling a business, buying a business, valuing a business and other related topics should contact Frank Krolicki of PR firm Walker Sands Communications at 312-546-4127. Frank can facilitate interviews with key executives at both BizBuySell.com and Chicagoland Sunbelt.

Historical Data for Cleveland-OH, OH Business Valuations

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the metro area for the last 9 quarters.

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

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