BizBuySell.com has just released its Long Island-NY, New York small business valuation trend data for First Quarter 2009.
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Q1 2009 Business Valuations in Long Island-NY, NY
Based on data compiled by BizBuySell.com, Long Island-NY 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, Long Island-NY, NY business valuations appear to be relatively stable.
To be clear, this is the median asking price for a business. If you want to buy a business, you may be able to buy a Long Island-NY company for much less. However, some Long Island-NY businesses may be selling for much more.
Another thing to remember is that this is the asking price for a Long Island-NY business. When a company 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. This suggests that a company listed for $325,000 might be purchased for between $276,250 and $292,500.
Number of Long Island-NY 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 Long Island-NY, but they are close by and so are probably representative of Long Island-NY business valuations.
One year ago, in , the BizBuySell.com dataset for Long Island-NY 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 Long Island-NY business-for-sale listings.
Long Island-NY, NY Q1 2009 Revenue Multiples
In the metro area, businesses 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 .
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 Long Island-NY, NY
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. Actual cash flow multiples are based on business specifics.
If you are interested in what cash flows are for a business in Long Island-NY, BizBuySell.com found that the median cash flow for Long Island-NY 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 Long Island-NY, NY
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 Long Island-NY, NY 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.
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 Long Island-NY, NY 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 tracking in the Long Island-NY area, based on BizBuySell.com's quarterly reports.
The table below shows how cash flow multiples are trending in the Long Island-NY area, based on BizBuySell.com's quarterly reports.
Quarter |
Median Cash
Flow Multiple |
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