Q1 2009 Costs to Buy a Business
How Much Is My San Antonio Business Worth?
We just received the latest San Antonio, Texas business-for-sale statistics.
Q1 2009 Business Valuations in San Antonio, TX
According to statistics issued by BizBuySell.com, San Antonio business-for-sale listings in Q1 2009 had a median asking price of $250,000.
That compares to a median ask price of $275,000 in Q1 2008. Given that San Antonio, TX median business asking prices appear to be dropping, it suggests that larger San Antonio businesses in may be holding off on selling until the economy turns around.
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 San Antonio company for much less. However, some San Antonio businesses may be selling for much more.
Another thing to remember is that this is the asking price for a San Antonio business. When an entrepreneur lists a business for sale, they typically set a price that ends up being more than the contracted sale price. A sale-to-ask ratio typically might be between 0.85 and 0.90, but of course it depends on deal specifics. This suggests that a company listed for $325,000 might be purchased for between $276,250 and $292,500.
Number of San Antonio Businesses for Sale in the Dataset
The study data comprised 139 listings in the San Antonio, TX metro area. As such, some of the businesses used to derive the median valuation might be outside of San Antonio, but they are nearby and so are likely representative of San Antonio business valuations.
One year ago, in Q1 2008, the BizBuySell.com dataset for San Antonio spanned 154 listings. The downward trend in the number of San Antonio business-for-sale listings is indicative of the current down economy.
San Antonio, TX Q1 2009 Revenue Multiples
In the San Antonio, TX metro area, businesses will typically sell for 1.11 times the selling company's revenues. That was the mean revenue multiple for Q1 2009 in this area of the country.
In other words, a firm with revenues of $200,000 might list for $222,818. Keep in mind that this is just an average for revenue multiples in the area. Some small businesses 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 $426,718 in Q1 2009.
To put this in perspective, the Q1 2008 revenue multiple was 1.04 and the median revenue for listed businesses was $407,664.
Q1 2009 Cash Flow Multiples In San Antonio, TX
Cash flow multiples are another common way to value a business.
For Q1 2009, the average cash flow multiple for listed businesses in the San Antonio, TX metro area was 4.03.
So, a business with cash flows of $150,000 might have an asking price of $603,764. 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 San Antonio, BizBuySell.com determined that the median cash flow for San Antonio area businesses was $90,000 in Q1 2009. In Q1 2008, cash flow multiples clocked in at 3.82 and the median cash flow was $90,500.
Things to Consider When Selling a Business in San Antonio, TX
Selling a business can be a full-time job in and of itself. If you sell on your own, without assistance from a business broker, you may be distracted from running the business, which can result in a deterioriation in business results and a lower sale price. This helpful advice was provided by Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.
Business Valuations for San Antonio, TX 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.
Historical Data for San Antonio, TX Business Valuations
If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the San Antonio, TX metro area for the last 9 quarters.
Here is how median revenue multiples are trending in the San Antonio area, based on BizBuySell.com's quarterly reports.
Here is how cash flow multiples are trending in the San Antonio area, based on BizBuySell.com's quarterly reports.
Flow Multiple
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