Q1 2009 Business Valuations in Providence-RI, RI

According to statistics issued by BizBuySell.com, Providence-RI 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, Providence-RI, RI 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 Providence-RI company for much less. Similarly, some Providence-RI businesses may be selling for much more.

Another thing to remember is that this is the asking price for a Providence-RI business. When a business owner lists a company 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 depends on deal specifics. In practice, this means a business listed for $250,000 would go for between $212,500 and $225,000.

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

One year ago, in , the BizBuySell.com dataset for Providence-RI 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 Providence-RI business-for-sale listings.

Q1 2009 Revenue Multiples In Providence-RI, RI

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 part of the country.

In other words, a firm with revenues of $200,000 might list for $0. Keep in mind that this is simply 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 .

In terms of trending year over year, the revenue multiple was 0.00 and the median revenue for listed businesses was $0.

Q1 2009 Cash Flow Multiples In Providence-RI, RI

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 company 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.

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

A diversified customer base is a great selling point to buyers. If you are preparing to sell a business and your customer base is not diversified, think about how you can diversify your customer base and thereby lower the risks for a buyer. By doing so, you can sell a business for a higher price. Ideally, no single customer should account for more than 10% of your revenues. This advice comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Providence-RI, RI 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 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 key executives at both BizBuySell.com and Chicagoland Sunbelt.

Historical Data for Providence-RI, RI 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 changing in the Providence-RI area, based on BizBuySell.com's economic data.

Here is how cash flow multiples are trending in the Providence-RI area, based on BizBuySell.com's quarterly reports.