Q1 2009 Business Valuations in Detroit-MI, MI

Based on data compiled by BizBuySell.com, Detroit-MI 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, Detroit-MI, MI 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 Detroit-MI company for much less. Alternatively, some Detroit-MI businesses may be selling for much more.

Also, this is the asking price for a Detroit-MI business. When an owner 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 Detroit-MI 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 Detroit-MI, but they are in the area and so are probably representative of Detroit-MI business valuations.

One year ago, in , the BizBuySell.com dataset for Detroit-MI 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 Detroit-MI business-for-sale listings.

Detroit-MI, MI Q1 2009 Revenue Multiples

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 area of the country.

In other words, a business that has revenues of $200,000 might list for $0. Keep in mind that this is just 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 $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 Detroit-MI, MI

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 calculation is dependent on the business selling for the area's average multiple. In practice, cash flow multiples can vary considerably from one business to another.

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

Things to Consider When Selling a Business in Detroit-MI, MI

When selling a business, valuations will be based on your profits. So, be sure to sell a business at a point when your profits are doing well if you want to sell for a great price. This helpful tip comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Detroit-MI, MI 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 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.

Members of the media who are interested in writing stories 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 Detroit-MI, MI 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 Detroit-MI area, based on BizBuySell.com's quarterly reports.

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