Livonia-MI, MI Q1 2009 Business Valuations

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

Another thing to remember is that this is the asking price for a Livonia-MI business. When a business 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. An owner who wants $275,000 might actually get between $233,750 and $247,500.

Number of Livonia-MI Businesses for Sale in the Dataset

The study data comprised listings in the metro area. Many of the businesses in the dataset are outside of Livonia-MI, but they are in the area and so are likely representative of Livonia-MI business valuations.

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

Q1 2009 Revenue Multiples In Livonia-MI, MI

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 metro area.

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 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 Livonia-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 Livonia-MI, BizBuySell.com reports that the median cash flow for Livonia-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 Livonia-MI, MI

Buyers want a business that is easy to understand and easy to run. Prior to selling a business, be sure to prepare a thorough operations manual that explains in detail how a new buyer would run the business. This helpful advice on how to buy a business comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Livonia-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 published every quarter. If you find these trends interesting, take a moment to visit BizBuySell.com Insights Report for additional 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 Livonia-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 Livonia-MI area, based on BizBuySell.com's quarterly reports.

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