Q1 2009 Costs to Buy a Business

How Much Is My Waukesha Business Worth?

Every quarter, BizBuySell.com published business valuation data, and we now have their latest Waukesha, Wisconsin business-for-sale statistics.

Q1 2009 Business Valuations in Waukesha, WI

Based on data compiled by BizBuySell.com, Waukesha business-for-sale listings in Q1 2009 had a median asking price of $300,000.

That compares to a median ask price of $392,500 in Q1 2008. Given that Waukesha, WI median business asking prices appear to be dropping, it suggests that larger Waukesha businesses in may be holding off on selling until the economy turns around.

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 Waukesha company for much less. However, some Waukesha businesses may be selling for much more.

Also, this is the asking price for a Waukesha 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 varies considerably. So, a business listed for $100,000 might sell for between $85,000 and $90,000.

Number of Waukesha Businesses for Sale in the Dataset

The study data comprised 100 listings in the Milwaukee-Waukesha-West Allis, WI metro area. As such, some of the businesses used to derive the median valuation might be outside of Waukesha, but they are close by and so are probably representative of Waukesha business valuations.

In Q1 2008, just one year ago, there were 98 Waukesha listings in the BizBuySell.com dataset. As a result of the recession, fewer Waukesha business owners are selling because they hope to weather the storm and sell after the economy turns around.

Q1 2009 Revenue Multiples In Waukesha, WI

In the Milwaukee-Waukesha-West Allis, WI metro area, businesses will typically sell for 1.04 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 business that has revenues of $200,000 might list for $207,939. Remember, however, 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 $493,087 in Q1 2009.

To put this in perspective, the Q1 2008 revenue multiple was 1.04 and the median revenue for listed businesses was $517,540.

Q1 2009 Cash Flow Multiples In Waukesha, WI

Cash flow multiples are another common way to value a business.

For Q1 2009, the average cash flow multiple for listed businesses in the Milwaukee-Waukesha-West Allis, WI metro area was 4.49.

So, a business with cash flows of $150,000 might have an asking price of $673,370. That calculation is dependent on the business selling for the area's average multiple. Most businesses will not conform to industry- or area averages.

If you are interested in what cash flows are for a business in Waukesha, BizBuySell.com reports that the median cash flow for Waukesha area businesses was $92,418 in Q1 2009. In Q1 2008, cash flow multiples clocked in at 3.74 and the median cash flow was $118,334.

Things to Consider When Selling a Business in Waukesha, WI

Buyers pay more for certainty than for uncertainty, especially when it comes to future cash flows. So, think about ways to lock in future cash flows for a prospective buyer and, if it can be done, you'll then be able to command a higher sale price for your business. This useful tip for selling a business comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.

Business Valuations for Waukesha, WI 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 Waukesha, WI 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 Milwaukee-Waukesha-West Allis, WI metro area for the last 9 quarters.

Quarter
Median Ask
Q1 2007
$362,500
Q2 2007
$220,000
Q3 2007
$332,500
Q4 2007
$335,000
Q1 2008
$392,500
Q2 2008
$395,000
Q3 2008
$374,950
Q4 2008
$367,450
Q1 2009
$300,000

Here is how median revenue multiples are tracking in the Waukesha area, based on BizBuySell.com's quarterly reports.

Quarter
Revenue Multiple
Q1 2007
1.01
Q2 2007
1.02
Q3 2007
1.13
Q4 2007
0.97
Q1 2008
1.04
Q2 2008
1.11
Q3 2008
1.04
Q4 2008
1.02
Q1 2009
1.04

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

Quarter
Median Cash
Flow Multiple
Q1 2007
3.92
Q2 2007
3.65
Q3 2007
3.77
Q4 2007
3.56
Q1 2008
3.74
Q2 2008
4.12
Q3 2008
4.32
Q4 2008
4.42
Q1 2009
4.49

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