Buying a Business
Cost to Buy a Business in Kenner
Considering purchasing a company in Kenner, Louisiana? You're no doubt wondering how much a typical Kenner, Louisiana business costs to buy.
Fortunately, the team at BizBuySell.com has made some data available on what businesses are going for in Kenner.
BizBuySell.com is the largest online marketplace for business-for-sale transactions. The vast majority of business brokers in the country put their business listings on BizBuySell.com. They also have many FSBO (for sale by owner) business-for-sale listings.
If you are looking to buy a business in Louisiana, check out the BizBuySell Louisiana listings to see the latest business-for-sale listings for Kenner and other Louisiana towns.
Kenner, LA Business Valuations
According to BizBuySell.com, the median asking price for an Kenner business-for-sale listing in Q4 2008, the quarter when they most recently released their data, was $250,000.
That was based on 64 listings in the New Orleans-Metairie-Kenner, LA metro area. As such, some of the businesses used to derive the median valuation might be outside of Kenner, but they are close by and so are probably representative of Kenner business valuations.
Note that this is the median asking price for a business. If you are in the market to buy a company, you may be able to buy an Kenner business for much less. The flip side is that some Kenner businesses may cost much more.
Another thing you should know is that this is the asking price for an Kenner business. Typically, when a company owner lists a company for sale, they start with an asking price that is higher than the final sale price. The sale-price-to-asking-price ratios depend on deal specifics but typically might be between 0.85 and 0.90. Based on this rule of thumb, a business listed for $225,000 might sell for between $191,250 and $202,500.
If you are interested in trends in business-for-sale asking prices, here are the median asking prices for companies in the New Orleans-Metairie-Kenner, LA metro area for the last 8 quarters.
Revenue Multiples In Kenner, LA
In the New Orleans-Metairie-Kenner, LA metro area, companies will typically sell for 1.07 times the selling company's revenues. The data indicates that is the mean revenue multiple for Q4 2008 in this area of the country.
In other words, a business that has revenues of $200,000 might list for $213,766. Remember, however, that this is only an average for revenue multiples in the area. Some businesses will have higher revenue multiples and others will have lower revenue multiples.
Here is how median revenue multiples are changing in the Kenner area, based on BizBuySell.com's quarterly reports.
According to BizBuySell.com, the median revenues for its business-for-sale listings was $345,510 in Q4 2008.
Cash Flow Multiples In Kenner, LA
Another popular way to value a business is through cash flow multiples.
For Q4 2008, the average cash flow multiple for listed businesses in the New Orleans-Metairie-Kenner, LA metro area was 3.71.
So, a business with cash flows of $120,000 might have an asking price of $445,078. That's if the business fits the area average. Actual cash flow multiples can vary considerably from one business to another.
Here is how cash flow multiples are trending in the Kenner area, based on BizBuySell.com's quarterly reports.
Flow Multiple
If you are interested in what cash flows are for a business in Kenner, BizBuySell.com reports that the median cash flow for Kenner area businesses was $94,644 in Q4 2008.
Tips for Kenner, LA Business Buyers
Bidding too little for a company is a bad strategy. Lowball bids are very rarely accepted. By making too low of a bid for a business, you risk offending the seller and ruining your chances of completing a deal. This helpful tip comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.
Business Valuations for Kenner, LA Businesses
If you have a specific business in mind and want to look at comparables in the area, we recommend the BizBuySell.com Business Valuation Tool. You can refine the dataset that generates business valuations to meet your specific needs, and access to the tool is very affordable -- less than $100.
More Information on BizBuySell.com's Quarterly Reports
The BizBuySell Insight Report is published on a quarterly basis. If you find this data interesting, be sure to visit BizBuySell.com Insights Report for more information.
Share this article
Additional Resources for Entrepreneurs