Phoenix-AZ, AZ Q1 2009 Business Valuations

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

Another thing to remember is that this is the asking price for a Phoenix-AZ business. When a company owner lists a business for sale, they typically set a price that ends up being more than the final 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 Phoenix-AZ 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 Phoenix-AZ, but they are in the area and so are probably representative of Phoenix-AZ business valuations.

One year ago, in , the BizBuySell.com dataset for Phoenix-AZ 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 Phoenix-AZ business-for-sale listings.

Q1 2009 Revenue Multiples In Phoenix-AZ, AZ

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 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 entities 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 Phoenix-AZ, AZ

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 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 Phoenix-AZ, BizBuySell.com reports that the median cash flow for Phoenix-AZ 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 Phoenix-AZ, AZ

Most business sales involve seller financing, especially in this enviroment when credit is tight. You have to finance as much as 70% of the purchase price. Typically, you would structure the deal to be paid off in full within four to five years. This helpful tip comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Phoenix-AZ, AZ 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 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 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 Phoenix-AZ, AZ 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 Phoenix-AZ area, based on BizBuySell.com's data.

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