Q1 2009 Costs to Buy a Business
How Much Is My Troy Business Worth?
BizBuySell.com has just released its Troy, New York business valuation data for First Quarter 2009.
Troy, NY Q1 2009 Business Valuations
According to statistics issued by BizBuySell.com, Troy business-for-sale listings in Q1 2009 had a median asking price of $444,950.
That compares to a median ask price of $479,000 in Q1 2008. Given that Troy, NY median business asking prices appear to be dropping, it suggests that larger Troy 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 Troy company for much less. However, some Troy businesses may be selling for much more.
Another thing to remember is that this is the asking price for a Troy business. When an entrepreneur lists a company 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 depends on deal specifics. So, a business listed for $100,000 might sell for between $85,000 and $90,000.
Number of Troy Businesses for Sale in the Dataset
The study data comprised 70 listings in the Albany-Schenectady-Troy, NY metro area. As such, some of the businesses used to derive the median valuation might be outside of Troy, but they are close by and so are probably representative of Troy business valuations.
One year ago, in Q1 2008, the BizBuySell.com dataset for Troy spanned 62 listings. In a market where you would think fewer business owners would be selling it's a bit surprising to see more Troy business-for-sale listings.
Q1 2009 Revenue Multiples In Troy, NY
In the Albany-Schenectady-Troy, NY metro area, businesses will usually sell for 1.92 times the selling company's revenues. That was the mean revenue multiple for Q1 2009 in this metro area.
In other words, a business that has revenues of $200,000 might list for $383,847. Remember, however, that this is just an average for revenue multiples in Troy and surrounding communities. 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 $453,000 in Q1 2009.
To put this in perspective, the Q1 2008 revenue multiple was 1.90 and the median revenue for listed businesses was $445,500.
Q1 2009 Cash Flow Multiples In Troy, NY
Cash flow multiples are another common way to value a business.
For Q1 2009, the average cash flow multiple for listed businesses in the Albany-Schenectady-Troy, NY metro area was 4.97.
So, a business with cash flows of $150,000 might have an asking price of $745,596. That's only if the firm complies with the local average. Actual cash flow multiples are based on business specifics.
If you are interested in what cash flows are for a business in Troy, BizBuySell.com reports that the median cash flow for Troy area businesses was $130,500 in Q1 2009. In Q1 2008, cash flow multiples clocked in at 4.30 and the median cash flow was $143,948.
Things to Consider When Selling a Business in Troy, NY
When setting a price for a business, it's worthwhile to invest in a professional valuation. If you define the business selling price without a professional valuation, you may end up leaving money on the table or having an unrealistic price that prevents a deal from ever getting done. This helpful tip on buying a business comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.
Business Valuations for Troy, NY Businesses
If you are contemplating buying a business or selling a business and would like to find out how much a business is worth, 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 Troy, NY Business Valuations
If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Albany-Schenectady-Troy, NY metro area for the last 9 quarters.
Here is how median revenue multiples are trending in the Troy area, based on BizBuySell.com's quarterly reports.
The table below shows how cash flow multiples are trending in the Troy area, based on BizBuySell.com's quarterly reports.
Flow Multiple
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