Q3 2009 Business Valuation Data

Sell My Waukesha, WI Business

Every quarter, BizBuySell.com publishes business valuation data, and we now have their latest Waukesha, Wisconsin statistics on business valuations for Third Quarter 2009.

Median Ask Prices for Waukesha, WI Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for companies in the Milwaukee-Waukesha-West Allis, WI metro area for the last 11 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
Q2 2009
$330,000
Q3 2009
$275,000

As you can see from the chart above, Waukesha business-for-sale listings in Q3 2009 had a median asking price of $275,000.

That compares to a median ask price of $374,950 in Q3 2008. The lower median asking price in last quarter suggests that Waukesha, WI 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 Waukesha, WI Businesses

Here is how median revenue multiples are trending 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
Q2 2009
1.00
Q3 2009
0.99

In the Milwaukee-Waukesha-West Allis, WI metro area, small companies 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 business that has revenues of $150,000 might list for $147,792. Remember, however, that this is simply an average for revenue multiples in Waukesha and surrounding communities. Some businesses will have higher revenue multiples and others will have lower revenue multiples.

According to BizBuySell.com, the median revenues for its Waukesha business-for-sale listings was $425,000 in Q3 2009.

To put this in perspective, the Q3 2008 revenue multiple was 1.04 and the median revenue for listed Waukesha businesses was $511,597.

Cash Flow Multiples for Waukesha, WI Businesses

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
Q2 2009
4.28
Q3 2009
4.28

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 Milwaukee-Waukesha-West Allis, WI metro area was 4.28.

So, a business with cash flows of $110,000 might list for $471,170. 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 Waukesha, BizBuySell.com reports that the median cash flow for Waukesha area businesses was $75,482 in Q3 2009. In Q3 2008, Waukesha cash flow multiples averaged 4.32 and the median cash flow was $102,572.

Number of Waukesha Businesses for Sale in the Dataset

The study data comprised 91 listings in the Milwaukee-Waukesha-West Allis, WI metro area. Many of the businesses in the dataset are outside of Waukesha, but they are nearby and so are probably representative of Waukesha business valuations.

In Q3 2008, just one year ago, there were 96 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.

Can I Sell My Waukesha, WI 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 Waukesha, WI 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 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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