Q1 2009 Business Valuations in Denver-CO, CO

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

That compares to a median ask price of $0 in . In spite of the difficult economy, Denver-CO, CO business valuations appear to be relatively stable.

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 Denver-CO company for much less. Similarly, some Denver-CO businesses may be selling for much more.

Another thing to remember is that this is the asking price for a Denver-CO 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. So, a business listed for $100,000 might sell for between $85,000 and $90,000.

Number of Denver-CO 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 Denver-CO, but they are in the area and so are probably representative of Denver-CO business valuations.

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

Q1 2009 Revenue Multiples In Denver-CO, CO

In the metro area, small businesses will typically sell for 0.00 times the selling company's revenues. This was the mean revenue multiple for in this area 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 Denver-CO and surrounding communities. Some small 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 .

In terms of trending year over year, the revenue multiple was 0.00 and the median revenue for listed businesses was $0.

Q1 2009 Cash Flow Multiples In Denver-CO, CO

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

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

So, a firm with cash flows of $150,000 might have an asking price of $0. That calculation is dependent on the business selling for the area's average multiple. Cash flow multiples will usually vary considerably based on many factors.

If you are interested in what cash flows are for a business in Denver-CO, BizBuySell.com reports that the median cash flow for Denver-CO area businesses was $0 in . In , cash flow multiples clocked in at 0.00 and the median cash flow was $0.

Tips for Denver-CO, CO Business Sellers

Most business sales involve seller financing, especially in this enviroment when credit is tight. You have to finance as much as 70% of the purchase price. Typically, you would structure the deal to be paid off in full within four to five years. This helpful tip comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Denver-CO, CO Businesses

If you are contemplating buying a business or selling a business and would like to find out how much a business is worth, 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 published every quarter. 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 the appropriate contacts at both BizBuySell.com and Chicagoland Sunbelt.

Historical Data for Denver-CO, CO 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 Denver-CO area, based on BizBuySell.com's quarterly reports.

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