Q1 2009 Business Valuations in Richmond-VA, VA

Based on data compiled by BizBuySell.com, Richmond-VA business-for-sale listings in had a median asking price of $0.

That compares to a median ask price of $0 in . Richmond-VA, VA business values are showing stability even in this tough economic environment.

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 Richmond-VA company for much less. However, some Richmond-VA businesses may be selling for much more.

Another thing to remember is that this is the asking price for a Richmond-VA business. When a company 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 varies considerably. Given this industry statistic, if a small business owner were to list a company for $300,000, it might sell for between $255,000 and $270,000.

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

One year ago, in , the BizBuySell.com dataset for Richmond-VA 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 Richmond-VA business-for-sale listings.

Q1 2009 Revenue Multiples In Richmond-VA, VA

In the metro area, businesses will typically sell for 0.00 times the selling company's revenues. This was the mean revenue multiple for in this area of the country.

In other words, a business that has revenues of $200,000 might list for $0. Keep in mind that this is just 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 .

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 Richmond-VA, VA

Cash flow multiples are another useful method 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. Most businesses will not conform to industry- or area averages.

If you are interested in what cash flows are for a business in Richmond-VA, BizBuySell.com reports that the median cash flow for Richmond-VA 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 Richmond-VA, VA

Buyers want a business that is easy to understand and easy to run. Prior to selling a business, be sure to prepare a thorough operations manual that explains in detail how a new buyer would run the business. This helpful advice on how to buy a business comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Richmond-VA, VA 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 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 Richmond-VA, VA 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 Richmond-VA area, based on BizBuySell.com's quarterly reports.

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