Q3 2009 Business Valuation Data
Sell My Aurora, CO Business
We just received the latest Aurora, Colorado business-for-sale statistics.
Median Ask Prices for Aurora, CO Businesses
If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Denver-Aurora, CO metro area for the last 11 quarters.
As shown in the table, Aurora business-for-sale listings in Q3 2009 had a median asking price of $247,000.
That compares to a median ask price of $250,000 in Q3 2008. The lower median asking price in last quarter suggests that Aurora, CO sellers are dropping their asking prices in light of market conditions. This is making it possible for more business-for-sale transactions to close.
Revenue Multiples for Aurora, CO Businesses
Here is how median revenue multiples are trending in the Aurora area, based on BizBuySell.com's quarterly reports.
In the Denver-Aurora, CO metro area, businesses will usually sell for 0.72 times the selling company's revenues. As the table above indicates, this was the mean revenue multiple for Q3 2009 in this metro area.
In other words, a business that has revenues of $150,000 might list for $107,852. Remember, however, that this is just an average for revenue multiples in the area. Some businesses will have higher revenue multiples and others will have lower revenue multiples.
According to BizBuySell.com, the median revenues for its Aurora business-for-sale listings was $432,036 in Q3 2009.
As a reference point, the Q3 2008 revenue multiple was 0.82 and the median revenue for listed Aurora businesses was $415,224.
Cash Flow Multiples for Aurora, CO Businesses
Here is how cash flow multiples are trending in the Aurora area, based on BizBuySell.com's quarterly reports.
Flow Multiple
As you probably know, cash flow multiples are another useful method to value a business.
For Q3 2009, the average cash flow multiple for listed businesses in the Denver-Aurora, CO metro area was 3.13.
So, a firm with cash flows of $110,000 might list for $343,998. That's only if the firm complies with the local average. Most businesses will not conform to industry- or area averages.
In case you were wondering what typical cash flows are for a business in Aurora, BizBuySell.com reports that the median cash flow for Aurora area businesses was $92,550 in Q3 2009. In Q3 2008, Aurora cash flow multiples averaged 3.14 and the median cash flow was $92,100.
Number of Aurora Businesses for Sale in the Dataset
The study data comprised 330 listings in the Denver-Aurora, CO metro area. As such, some of the businesses used to derive the median valuation might be outside of Aurora, but they are in the area and so are probably representative of Aurora business valuations.
In Q3 2008, just one year ago, there were 391 Aurora listings in the BizBuySell.com dataset. As a result of the recession, fewer Aurora business owners are selling because they hope to weather the storm and sell after the economy turns around.
Can I Sell My Aurora, CO Business Now?
Selling a business is something you should start preparing to do long before you actually want to sell a business. A common mistake is to wait too long to learn about what it takes to sell a business for a premium price. Even if you don't plan on pursuing an exit for several years, you should start the process now. This useful tip for selling a business comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.
Business Valuations for Aurora, CO Businesses
If you are contemplating buying a business or selling a business and would like to look at completed transaction sale price comparables in the area, we recommend the BizBuySell.com Business Valuation Tool. Based on your specific criteria, you can modify the company dataset that creates business valuation estimates. Access to the tool is very reasonable -- costing less than $100.
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.
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