Q3 2009 Business Valuation Data

Sell My Austin, TX Business

We just received the latest Austin, Texas business-for-sale statistics.

Median Ask Prices for Austin, TX Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Austin-Round Rock, TX metro area for the last 11 quarters.

Quarter
Median Ask
Q1 2007
$250,000
Q2 2007
$250,000
Q3 2007
$275,000
Q4 2007
$295,000
Q1 2008
$297,000
Q2 2008
$290,000
Q3 2008
$357,500
Q4 2008
$350,000
Q1 2009
$325,000
Q2 2009
$400,000
Q3 2009
$400,000

As shown in the table, Austin business-for-sale listings in Q3 2009 had a median asking price of $400,000.

That compares to a median ask price of $357,500 in Q3 2008. With median asking prices for Austin, TX businesses for sale trending up, we can conclude that only businesses that know they can command a premium price are willing to sell in this tough market.

Revenue Multiples for Austin, TX Businesses

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

Quarter
Revenue Multiple
Q1 2007
0.95
Q2 2007
1.08
Q3 2007
0.97
Q4 2007
0.98
Q1 2008
0.95
Q2 2008
0.96
Q3 2008
1.03
Q4 2008
0.95
Q1 2009
0.97
Q2 2009
1.03
Q3 2009
0.99

In the Austin-Round Rock, TX metro area, businesses will typically sell for 0.99 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 firm with revenues of $150,000 might list for $149,224. Keep in mind that this is just an average for revenue multiples in Austin and surrounding communities. Some companies will have higher revenue multiples and others will have lower revenue multiples.

According to BizBuySell.com, the median revenues for its Austin business-for-sale listings was $600,000 in Q3 2009.

To put this in perspective, the Q3 2008 revenue multiple was 1.03 and the median revenue for listed Austin businesses was $508,243.

Cash Flow Multiples for Austin, TX Businesses

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

Quarter
Median Cash
Flow Multiple
Q1 2007
4.02
Q2 2007
3.63
Q3 2007
3.31
Q4 2007
3.23
Q1 2008
3.56
Q2 2008
3.71
Q3 2008
3.98
Q4 2008
3.82
Q1 2009
3.88
Q2 2009
4.02
Q3 2009
4.03

As you probably know, cash flow multiples are another common way to value a business.

For Q3 2009, the average cash flow multiple for listed businesses in the Austin-Round Rock, TX metro area was 4.03.

So, a business with cash flows of $110,000 might list for $443,707. 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 Austin, BizBuySell.com reports that the median cash flow for Austin area businesses was $131,683 in Q3 2009. In Q3 2008, Austin cash flow multiples averaged 3.98 and the median cash flow was $111,680.

Number of Austin Businesses for Sale in the Dataset

The study data comprised 201 listings in the Austin-Round Rock, TX metro area. As such, some of the businesses used to derive the median valuation might be outside of Austin, but they are close by and so are likely representative of Austin business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for Austin spanned 200 listings. In a market where you would think fewer business owners would be selling, it's a bit surprising to see more Austin business-for-sale listings.

Can I Sell My Austin, TX Business Now?

If you want to sell a business now, odds are you can sell now. You may even be able to get a premium acquisition price from a buyer. It all depends on how well you execute. Plenty of deals are getting done, all the time regardless of macro factors. This good selling-a-business tip comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.

Business Valuations for Austin, TX Businesses

If you are considering buying a business or selling a business and would like to get an estimated company valuation, 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.

Share this article


Additional Resources for Entrepreneurs

Lists of Venture Capital and Private Equity Firms

Franchise Opportunities

Contributors

Business Glossary