Northern New Jersey-NJ, NJ Q1 2009 Business Valuations

According to statistics issued by BizBuySell.com, Northern New Jersey-NJ 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, Northern New Jersey-NJ, NJ 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 Northern New Jersey-NJ company for much less. Alternatively, some Northern New Jersey-NJ businesses may be selling for much more.

Also, this is the asking price for a Northern New Jersey-NJ business. When an 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 Northern New Jersey-NJ 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 Northern New Jersey-NJ, but they are nearby and so are probably representative of Northern New Jersey-NJ business valuations.

One year ago, in , the BizBuySell.com dataset for Northern New Jersey-NJ 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 Northern New Jersey-NJ business-for-sale listings.

Q1 2009 Revenue Multiples In Northern New Jersey-NJ, NJ

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 firm with revenues of $200,000 might list for $0. Remember, however, that this is in fact 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 Northern New Jersey-NJ, NJ

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 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. Most businesses will not conform to industry- or area averages.

In case you were wondering what typical cash flows are for a business in Northern New Jersey-NJ, BizBuySell.com determined that the median cash flow for Northern New Jersey-NJ 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 Northern New Jersey-NJ, NJ

In this difficult econonmic environment, sellers must be bankers. That means you should offer seller financing to prospective buyers because you, as a seller, may be their only viable source of financing. This tip for selling a business was provided by Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Northern New Jersey-NJ, NJ Businesses

If you are contemplating buying a business or selling a business and would like to value a specific business, 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 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 Northern New Jersey-NJ, NJ Business Valuations

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses for sale in the metro area for the last 9 quarters.

Here is how median revenue multiples are moving in the Northern New Jersey-NJ area, based on BizBuySell.com's data.

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