Q1 2009 Costs to Buy a Business

How Much Is My Fort Worth Business Worth?

Every quarter, BizBuySell.com published business valuation data, and we now have their latest Fort Worth, Texas statistics on business valuations for First Quarter 2009.

Q1 2009 Business Valuations in Fort Worth, TX

According to statistics issued by BizBuySell.com, Fort Worth business-for-sale listings in Q1 2009 had a median asking price of $285,000.

That compares to a median ask price of $300,000 in Q1 2008. One interpretation of the lower median asking price is that Fort Worth, TX sellers are dropping their asking prices in light of market conditions.

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 Fort Worth company for much less. However, some Fort Worth businesses may be selling for much more.

Another thing to remember is that this is the asking price for a Fort Worth business. When an entrepreneur lists a business 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 Fort Worth Businesses for Sale in the Dataset

The study data comprised 990 listings in the Dallas-Fort Worth-Arlington, TX metro area. As such, some of the businesses used to derive the median valuation might be outside of Fort Worth, but they are nearby and so are probably representative of Fort Worth business valuations.

One year ago, in Q1 2008, the BizBuySell.com dataset for Fort Worth spanned 1038 listings. In a market where you would think fewer business owners would be selling, it's a bit surprising to see more Fort Worth business-for-sale listings.

Q1 2009 Revenue Multiples In Fort Worth, TX

In the Dallas-Fort Worth-Arlington, TX metro area, businesses will usually sell for 1.01 times the selling company's revenues. This was the mean revenue multiple for Q1 2009 in this area of the country.

In other words, a firm with revenues of $200,000 might list for $202,772. Remember, however, that this is simply 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 $434,602 in Q1 2009.

To give this some context, the Q1 2008 revenue multiple was 1.04 and the median revenue for listed businesses was $460,950.

Q1 2009 Cash Flow Multiples In Fort Worth, TX

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

For Q1 2009, the average cash flow multiple for listed businesses in the Dallas-Fort Worth-Arlington, TX metro area was 3.69.

So, a business with cash flows of $150,000 might have an asking price of $552,992. That calculation is dependent on the business selling for the area's average multiple. Most businesses will not conform to industry- or area averages.

If you are interested in what cash flows are for a business in Fort Worth, BizBuySell.com reports that the median cash flow for Fort Worth area businesses was $108,110 in Q1 2009. In Q1 2008, cash flow multiples clocked in at 3.81 and the median cash flow was $110,000.

Tips for Fort Worth, TX Business Sellers

The best time to sell a business is when you don't have to sell the business. If you have to sell under time pressure, you are not likely to get the best sale price. So, don't wait to sell a business until something (e.g. bad health, a divorce, etc.) forces you to sell. This advice on selling a business comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.

Business Valuations for Fort Worth, TX 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 more information.

Historical Data for Fort Worth, TX Business Valuations

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

Quarter
Median Ask
Q1 2007
$330,000
Q2 2007
$300,000
Q3 2007
$330,000
Q4 2007
$330,000
Q1 2008
$300,000
Q2 2008
$291,000
Q3 2008
$275,000
Q4 2008
$290,000
Q1 2009
$285,000

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

Quarter
Revenue Multiple
Q1 2007
1.04
Q2 2007
1.04
Q3 2007
1.03
Q4 2007
1.00
Q1 2008
1.04
Q2 2008
1.00
Q3 2008
0.95
Q4 2008
0.96
Q1 2009
1.01

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

Quarter
Median Cash
Flow Multiple
Q1 2007
3.71
Q2 2007
3.69
Q3 2007
3.73
Q4 2007
3.69
Q1 2008
3.81
Q2 2008
3.69
Q3 2008
3.54
Q4 2008
3.53
Q1 2009
3.69

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