Buying a Business
Cost to Buy a Business in Kissimmee
If you want to buy a business in Kissimmee, Florida, you'd do well to learn a little bit about trends in Kissimmee, Florida business valuations.
Fortunately, the folks at BizBuySell.com have made some data available on what businesses are going for in Kissimmee.
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. In addition, many business owners who are selling on their own, without a broker, will place listings on BizBuySell.com.
If you are looking to buy a business in Florida, check out the BizBuySell Florida listings to see the latest business-for-sale listings for Kissimmee and other Florida municipalities.
Business Valuations in Kissimmee, FL
According to BizBuySell.com, the median asking price for an Kissimmee business-for-sale listing in Q4 2008, the quarter when they most recently released their data, was $199,900.
That was based on 941 listings in the Orlando-Kissimmee, FL metro area. Many of the businesses in the dataset are outside of Kissimmee, but they are nearby and so are likely representative of Kissimmee 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 Kissimmee business for much less. At the same time, some Kissimmee businesses may cost much more.
Another thing you should know is that this is the asking price for an Kissimmee business. Typically, when a business owner lists a business for sale, they start with an asking price that is higher than the ultimate sale price. The sale-price-to-asking-price ratio varies considerably but typically might be between 0.85 and 0.90. In other words, a business listed for $100,000 might sell for between $85,000 and $90,000.
If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Orlando-Kissimmee, FL metro area for the last 8 quarters.
Revenue Multiples In Kissimmee, FL
In the Orlando-Kissimmee, FL metro area, businesses will typically sell for 0.84 times the selling company's revenues. That was the mean revenue multiple for Q4 2008 in this metro area.
In other words, a business that has revenues of $200,000 might list for $167,195. Keep in mind that this is in fact an average for revenue multiples in the area. Some companies will have higher revenue multiples and others will have lower revenue multiples.
Here is how median revenue multiples are trending in the Kissimmee area, based on BizBuySell.com's quarterly reports.
According to BizBuySell.com, the median revenues for its business-for-sale listings was $336,000 in Q4 2008.
Cash Flow Multiples In Kissimmee, FL
Another useful technique to value a business is through cash flow multiples.
For Q4 2008, the average cash flow multiple for listed businesses in the Orlando-Kissimmee, FL metro area was 2.97.
So, a business with cash flows of $120,000 might have an asking price of $356,638. That's if the business fits the area average. Most businesses will not conform to industry- or area averages.
The table below shows how cash flow multiples are trending in the Kissimmee area, based on BizBuySell.com's quarterly reports.
Flow Multiple
In case you were wondering what typical cash flows are for a business in Kissimmee, BizBuySell.com reports that the median cash flow for Kissimmee area businesses was $87,462 in Q4 2008.
Tips for Kissimmee, FL Business Buyers
The baby boomer generation has made its mark in the business world. Aging boomers are now looking toward retirement, while many younger boomers find they're ready to be their own boss. It's a good idea to look at businesses that are being sold by aging business boomers as they may be motivated sellers. This helpful tip on buying a business comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.
Business Valuations for Kissimmee, FL 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 additional information.
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