Q1 2009 Business Valuations in Houston-TX, TX

According to statistics issued by BizBuySell.com, Houston-TX 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, Houston-TX, TX 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 Houston-TX company for much less. Similarly, some Houston-TX businesses may be selling for much more.

Another thing to remember is that this is the asking price for a Houston-TX business. When a business 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 Houston-TX 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 Houston-TX, but they are nearby and so are probably representative of Houston-TX business valuations.

One year ago, in , the BizBuySell.com dataset for Houston-TX 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 Houston-TX business-for-sale listings.

Q1 2009 Revenue Multiples In Houston-TX, TX

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

In other words, a firm with revenues of $200,000 might list for $0. Remember, however, that this is just an average for revenue multiples in the area. Some entities 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 .

To put this in perspective, the revenue multiple was 0.00 and the median revenue for listed businesses was $0.

Q1 2009 Cash Flow Multiples In Houston-TX, TX

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

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

So, a company 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.

If you are interested in what cash flows are for a business in Houston-TX, BizBuySell.com reports that the median cash flow for Houston-TX 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 Houston-TX, TX

When choosing a business broker, look for a broker that can maintain confidentiality and simultaneously get you the most qualified buyers. In addition, make sure the business broker has a good track record in facilitating negotiations between buyer and seller in a way that arrives at the best possible transaction. This helpful tip comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Houston-TX, TX 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 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 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 Houston-TX, 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 metro area for the last 9 quarters.

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

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