Q1 2009 Business Valuations in Louisville-KY, KY

Based on data compiled by BizBuySell.com, Louisville-KY business-for-sale listings in had a median asking price of $0.

That compares to a median ask price of $0 in . Louisville-KY, KY business values are showing stability even in this tough economic environment.

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 Louisville-KY company for much less. However, some Louisville-KY businesses may be selling for much more.

Also, this is the asking price for a Louisville-KY business. When a business owner lists a company 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. So, a business listed for $100,000 might sell for between $85,000 and $90,000.

Number of Louisville-KY 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 Louisville-KY, but they are in the area and so are probably representative of Louisville-KY business valuations.

One year ago, in , the BizBuySell.com dataset for Louisville-KY 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 Louisville-KY business-for-sale listings.

Q1 2009 Revenue Multiples In Louisville-KY, KY

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

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

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. The actual distribution on revenue multiples for a given set of businesses can be quite wide-ranging.

If you are interested in what cash flows are for a business in Louisville-KY, BizBuySell.com found that the median cash flow for Louisville-KY 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 Louisville-KY, KY

Before you sell a business, you will need to recast your financials to adjust for what the business owner takes out of the business. This includes things like a high salary, car expenses and other owner perks. This useful tip comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Louisville-KY, KY 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 Louisville-KY, KY 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 Louisville-KY area, based on BizBuySell.com's quarterly reports.

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