Q3 2009 Business Valuation Data
Sell My East Hartford, CT Business
BizBuySell.com has just released its East Hartford, Connecticut business valuation data for Third Quarter 2009.
Median Ask Prices for East Hartford, CT Businesses
If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses for sale in the Hartford-West Hartford-East Hartford, CT metro area for the last 11 quarters.
As you can see from the chart above, East Hartford business-for-sale listings in Q3 2009 had a median asking price of $190,000.
That compares to a median ask price of $175,000 in Q3 2008. With median asking prices for East Hartford, CT 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 East Hartford, CT Businesses
Here is how median revenue multiples are trending in the East Hartford area, based on BizBuySell.com's quarterly reports.
In the Hartford-West Hartford-East Hartford, CT metro area, businesses will usually sell for 0.59 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 $87,772. Remember, however, that this is in fact an average for revenue multiples in East Hartford 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 East Hartford business-for-sale listings was $418,489 in Q3 2009.
As a reference point, the Q3 2008 revenue multiple was 0.62 and the median revenue for listed East Hartford businesses was $360,000.
Cash Flow Multiples for East Hartford, CT Businesses
The table below shows how cash flow multiples are trending in the East Hartford area, based on BizBuySell.com's quarterly reports.
Flow Multiple
As you probably know, cash flow multiples are another popular technique to value a business.
For Q3 2009, the average cash flow multiple for listed businesses in the Hartford-West Hartford-East Hartford, CT metro area was 2.80.
So, a business with cash flows of $110,000 might list for $308,296. 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 East Hartford, BizBuySell.com determined that the median cash flow for East Hartford area businesses was $95,264 in Q3 2009. In Q3 2008, East Hartford cash flow multiples averaged 2.80 and the median cash flow was $90,000.
Number of East Hartford Businesses for Sale in the Dataset
The study data comprised 196 listings in the Hartford-West Hartford-East Hartford, CT metro area. As such, some of the businesses used to derive the median valuation might be outside of East Hartford, but they are in the area and so are probably representative of East Hartford business valuations.
One year ago, in Q3 2008, the BizBuySell.com dataset for East Hartford spanned 215 listings. The downward trend in the number of East Hartford business-for-sale listings is indicative of the current down economy.
Can I Sell My East Hartford, CT Business Now?
While the economy can play a role in deciding whether to sell a business or not, it is only one of many factors. Indications suggest that the economy is turning around, so it's probaby a good time to consider selling right now. Beyond that, though, you have to look at your specific case. Will there be substantial demand for your business? Will you be able to get a good price when selling your company? If not, think about what factors you can control that can make your business more attractive to prospective buyers, and then work diligently to improve your business attractiveness and raise your business valuation. This helpful advice was provided by Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.
Business Valuations for East Hartford, CT Businesses
If you are contemplating buying a business or selling a business and would like to determine how much a business is worth, 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 published quarterly. If you find these trends interesting, take a moment to visit BizBuySell.com Insights Report for more information.
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