BizBuySell.com has just released its Kansas City-MO, Missouri statistics on business valuations for First Quarter 2009.
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Q1 2009 Business Valuations in Kansas City-MO, MO
According to statistics issued by BizBuySell.com, Kansas City-MO 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, Kansas City-MO, MO 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 Kansas City-MO company for much less. Similarly, some Kansas City-MO businesses may be selling for much more.
Another thing to remember is that this is the asking price for a Kansas City-MO business. When a business owner lists a company for sale, they typically set a price that ends up being more than the ultimate 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 Kansas City-MO 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 Kansas City-MO, but they are in the area and so are likely representative of Kansas City-MO business valuations.
One year ago, in , the BizBuySell.com dataset for Kansas City-MO 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 Kansas City-MO business-for-sale listings.
Q1 2009 Revenue Multiples In Kansas City-MO, MO
In the metro area, companies will typically 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. Remember, however, 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 .
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 Kansas City-MO, MO
Cash flow multiples are another common way to value a business.
For , the average cash flow multiple for listed businesses 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. Actual cash flow multiples are based on business specifics.
If you are interested in what cash flows are for a business in Kansas City-MO, BizBuySell.com found that the median cash flow for Kansas City-MO 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 Kansas City-MO, MO
It's critical to keep the potential sale of your business as confidential as possible. If that confidentiality is compromised, you risk losing customers, employees and vendors. Loose lips sink ships...and sink business-for-sale transactions as well! This useful business selling advice comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.
Business Valuations for Kansas City-MO, MO 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 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 Kansas City-MO, MO Business Valuations
If you are interested in trends in business-for-sale asking prices, here are the median asking prices for companies in the metro area for the last 9 quarters.
Here is how median revenue multiples are trending in the Kansas City-MO area, based on BizBuySell.com's data.
Here is how cash flow multiples are trending in the Kansas City-MO area, based on BizBuySell.com's quarterly reports.
Quarter |
Median Cash
Flow Multiple |
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