Q1 2009 Business Valuations in Salt Lake City-UT, UT

According to statistics issued by BizBuySell.com, Salt Lake City-UT 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, Salt Lake City-UT, UT 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 Salt Lake City-UT company for much less. Alternatively, some Salt Lake City-UT businesses may be selling for much more.

Another thing to remember is that this is the asking price for a Salt Lake City-UT business. When an 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. In practice, this means a business listed for $250,000 would go for between $212,500 and $225,000.

Number of Salt Lake City-UT 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 Salt Lake City-UT, but they are in the area and so are probably representative of Salt Lake City-UT business valuations.

One year ago, in , the BizBuySell.com dataset for Salt Lake City-UT 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 Salt Lake City-UT business-for-sale listings.

Q1 2009 Revenue Multiples In Salt Lake City-UT, UT

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 business that has revenues of $200,000 might list for $0. Keep in mind that this is only an average for revenue multiples in Salt Lake City-UT and surrounding communities. 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 Salt Lake City-UT, UT

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 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. The actual distribution on revenue multiples for a given set of businesses can be quite wide-ranging.

In case you were wondering what typical cash flows are for a business in Salt Lake City-UT, BizBuySell.com found that the median cash flow for Salt Lake City-UT 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 Salt Lake City-UT, UT

Don't assume that the price you initially negotiate with a buyer will stay the same all the way to closing. During due diligence, the buyer may find some blemishes on the businesses that lead them to lower their offer. This is a natural part of the process and should be expected. This helpful business selling tip comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Salt Lake City-UT, UT 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 the appropriate contacts at both BizBuySell.com and Chicagoland Sunbelt.

Historical Data for Salt Lake City-UT, UT 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 changing in the Salt Lake City-UT area, based on BizBuySell.com's data.

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