Q1 2009 Business Valuations in Nashville-TN, TN

According to statistics issued by BizBuySell.com, Nashville-TN 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, Nashville-TN, TN 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 Nashville-TN company for much less. However, some Nashville-TN businesses may be selling for much more.

Also, this is the asking price for a Nashville-TN business. When an 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 depends on deal specifics. So, a business listed for $100,000 might sell for between $85,000 and $90,000.

Number of Nashville-TN 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 Nashville-TN, but they are close by and so are likely representative of Nashville-TN business valuations.

One year ago, in , the BizBuySell.com dataset for Nashville-TN 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 Nashville-TN business-for-sale listings.

Q1 2009 Revenue Multiples In Nashville-TN, TN

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 metro area.

In other words, a firm with revenues of $200,000 might list for $0. Keep in mind that this is just an average for revenue multiples in the area. Some companies 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 Nashville-TN, TN

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 firm with cash flows of $150,000 might have an asking price of $0. That's only if the firm complies with the local average. The actual distribution on revenue multiples for a given set of businesses can be quite wide-ranging.

In case you were wondering what typical cash flows are for a business in Nashville-TN, BizBuySell.com found that the median cash flow for Nashville-TN 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 Nashville-TN, TN

Buyers pay more for certainty than for uncertainty, especially when it comes to future cash flows. So, think about ways to lock in future cash flows for a prospective buyer and, if it can be done, you'll then be able to command a higher sale price for your business. This useful tip for selling a business comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Nashville-TN, TN 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 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 the appropriate contacts at both BizBuySell.com and Chicagoland Sunbelt.

Historical Data for Nashville-TN, TN 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 changing in the Nashville-TN area, based on BizBuySell.com's quarterly reports.

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