Q2 2009 Business Valuation Data

Business Valuations for Houston, TX

Here's the latest BizBuySell.com Houston, Texas business valuation statistics for Second Quarter 2009.

Q2 2009 Business Valuations in Houston, TX

According to the latest data compiled by BizBuySell.com, Houston listings for businesses for sale in Q2 2009 had a median asking price of $295,000.

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

Houston, TX Q2 2009 Revenue Multiples

In the Houston-Sugar Land-Baytown, TX metro area, small businesses will on average sell for 1.06 times the selling company's revenues. That was 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 $465,220 in Q2 2009.

In terms of trending year over year, the Q2 2008 revenue multiple was 1.08 and the median revenue for selling businesses was $356,000.

Q2 2009 Cash Flow Multiples In Houston, TX

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

For Q2 2009, the average cash flow multiple for listed businesses in the Houston-Sugar Land-Baytown, TX metro area was 3.65.

BizBuySell.com found that the median cash flow for Houston area businesses was $113,180 in Q2 2009. In Q2 2008, cash flow multiples clocked in at 3.66 and the median cash flow was $95,328.

Number of Houston Businesses for Sale in the Dataset

The study data comprised 500 listings in the Houston-Sugar Land-Baytown, TX metro area. Many of the businesses in the dataset are outside of Houston, but they are nearby and so are probably representative of Houston business valuations.

Tips for Houston, TX Business Valuations

Some of the most popular business valuation methods are based on the market price for similar companies that are selling in the same timeframe. However, if it is warranted, the unique characteristics of a business may lead a valuation expert to calculate a company valuation that is radically different from peer company valuations. This good advice comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.

Business Valuations for Houston, TX 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 Houston, TX Business Valuations

With respect to local trends in business-for-sale asking prices, here are the median asking prices for businesses in the Houston-Sugar Land-Baytown, TX metro area for the last 10 quarters.

Quarter
Median Ask
Q1 2007
$250,000
Q2 2007
$245,000
Q3 2007
$225,000
Q4 2007
$225,000
Q1 2008
$221,500
Q2 2008
$250,000
Q3 2008
$250,000
Q4 2008
$285,000
Q1 2009
$295,000
Q2 2009
$295,000

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

Quarter
Revenue Multiple
Q1 2007
1.25
Q2 2007
1.22
Q3 2007
1.15
Q4 2007
1.10
Q1 2008
1.07
Q2 2008
1.08
Q3 2008
1.04
Q4 2008
1.07
Q1 2009
1.07
Q2 2009
1.06

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

Quarter
Median Cash
Flow Multiple
Q1 2007
3.88
Q2 2007
3.52
Q3 2007
3.59
Q4 2007
3.59
Q1 2008
3.56
Q2 2008
3.66
Q3 2008
3.61
Q4 2008
3.70
Q1 2009
3.65
Q2 2009
3.65

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