Q2 2009 Business Valuation Data

Business Valuations for Carmel, IN

Here's the latest BizBuySell.com Carmel, Indiana reports on business valuations for Q2 2009.

Q2 2009 Business Valuations in Carmel, IN

Based on statistics prepared by BizBuySell.com, Carmel listings for businesses for sale in Q2 2009 had a median asking price of $250,000.

The median ask price for selling businesses was $250,000 in Q2 2008.

Carmel, IN Q2 2009 Revenue Multiples

In the Indianapolis-Carmel, IN metro area, businesses will on average sell for 0.76 times the selling company's revenues. The data indicates that is the mean revenue multiple for Q2 2009 in this area of the country.

According to the latest BizBuySell.com data, the median revenue for its listed businesses was $381,000 in Q2 2009.

To put this in perspective, the Q2 2008 revenue multiple was 0.85 and the median revenue for selling businesses was $366,000.

Q2 2009 Cash Flow Multiples In Carmel, IN

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

For Q2 2009, the average cash flow multiple for listed businesses in the Indianapolis-Carmel, IN metro area was 3.10.

BizBuySell.com reports that the median cash flow for Carmel area businesses was $90,000 in Q2 2009. In Q2 2008, cash flow multiples clocked in at 3.47 and the median cash flow was $90,000.

Number of Carmel Businesses for Sale in the Dataset

The study data comprised 103 listings in the Indianapolis-Carmel, IN metro area. As such, some of the businesses used to derive the median valuation might be outside of Carmel, but they are in the area and so are probably representative of Carmel business valuations.

Considerations When Valuing a Business in Carmel, IN

Using the price-to-equity ratios (P/E) of public companies usually is not a good way to value a small company. That's because owning stock in public companies is much less risky than owning a small business. As such, a buyer of a small business will pay much less when buying a small company than the valuation calculation that is based on a public company P/E ratio. This helpful advice on how to value a business comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.

Business Valuations for Carmel, IN 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 Carmel, IN Business Valuations

With respect to local trends in business-for-sale asking prices, here are the median asking prices for businesses in the Indianapolis-Carmel, IN metro area for the last 10 quarters.

Quarter
Median Ask
Q1 2007
$155,000
Q2 2007
$180,000
Q3 2007
$257,500
Q4 2007
$277,000
Q1 2008
$257,000
Q2 2008
$250,000
Q3 2008
$250,000
Q4 2008
$242,500
Q1 2009
$250,000
Q2 2009
$250,000

The chart below shows how median revenue multiples are changing in the Carmel area, based on BizBuySell.com's quarterly reports.

Quarter
Revenue Multiple
Q1 2007
0.70
Q2 2007
0.73
Q3 2007
0.90
Q4 2007
1.01
Q1 2008
1.03
Q2 2008
0.85
Q3 2008
0.86
Q4 2008
0.76
Q1 2009
0.76
Q2 2009
0.76

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

Quarter
Median Cash
Flow Multiple
Q1 2007
3.66
Q2 2007
3.41
Q3 2007
4.09
Q4 2007
4.41
Q1 2008
3.74
Q2 2008
3.47
Q3 2008
3.38
Q4 2008
3.02
Q1 2009
3.46
Q2 2009
3.10

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