New Orleans-LA, LA Q1 2009 Business Valuations

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

Another thing to remember is that this is the asking price for a New Orleans-LA 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 New Orleans-LA 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 New Orleans-LA, but they are in the area and so are likely representative of New Orleans-LA business valuations.

One year ago, in , the BizBuySell.com dataset for New Orleans-LA 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 New Orleans-LA business-for-sale listings.

Q1 2009 Revenue Multiples In New Orleans-LA, LA

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 metro area.

In other words, a firm with revenues of $200,000 might list for $0. Remember, however, that this is only an average for revenue multiples in New Orleans-LA and surrounding communities. Some small 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 New Orleans-LA, LA

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's only if the firm complies with the local average. 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 New Orleans-LA, BizBuySell.com reports that the median cash flow for New Orleans-LA 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 New Orleans-LA, LA

Competitors tend to pay less for a business than strategic buyers. In most cases, selling out to a competitor should be your exit strategy of last resort (although selling to an employee may get an even lower exit price). This good advice comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for New Orleans-LA, LA Businesses

If you are contemplating buying a business or selling a business and would like to get an estimated business valuation, 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 New Orleans-LA, LA 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 New Orleans-LA area, based on BizBuySell.com's quarterly reports.

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