Buying a Business
Cost to Buy a Business in Oklahoma City
Considering purchasing a company in Oklahoma City, Oklahoma? You're no doubt wondering how much a typical Oklahoma City, Oklahoma business costs to buy.
Fortunately, the folks at BizBuySell.com have made some data available on what it costs to buy a business in Oklahoma City.
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 Oklahoma, check out the BizBuySell Oklahoma listings to see the latest business-for-sale listings for Oklahoma City and other Oklahoma municipalities.
Business Valuations in Oklahoma City, OK
Based on the BizBuySell.com data, the median asking price for an Oklahoma City business-for-sale listing in Q4 2008, the quarter when they most recently released their data, was $249,000.
That was based on 107 listings in the Oklahoma City, OK metro area. As such, some of the businesses used to derive the median valuation might be outside of Oklahoma City, but they are in the area and so are likely representative of Oklahoma City 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 Oklahoma City business for much less. At the same time, some Oklahoma City businesses may cost much more.
Another thing you should know is that this is the asking price for an Oklahoma City business. Typically, when an owner lists a business for sale, they start with an asking price that is higher than the eventual sale price. The sale-price-to-asking-price ratios depend on deal specifics but typically might be between 0.85 and 0.90. That means a business listed for $200,000 might be sold for between $170,000 and $180,000.
If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Oklahoma City, OK metro area for the last 8 quarters.
Revenue Multiples In Oklahoma City, OK
In the Oklahoma City, OK metro area, companies will typically sell for 0.96 times the selling company's revenues. The data indicates that is the mean revenue multiple for Q4 2008 in this metro area.
In other words, a firm with revenues of $200,000 might list for $191,842. Remember, however, that this is just 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 trending in the Oklahoma City area, based on BizBuySell.com's quarterly reports.
According to BizBuySell.com, the median revenues for its business-for-sale listings was $360,193 in Q4 2008.
Cash Flow Multiples In Oklahoma City, OK
Another common method to value a business is through cash flow multiples.
For Q4 2008, the average cash flow multiple for businesses listed in the Oklahoma City, OK metro area was 3.43.
So, a company with cash flows of $120,000 might have an asking price of $412,123. That's if the business fits the area average. Actual cash flow multiples are based on business specifics.
The table below shows how cash flow multiples are trending in the Oklahoma City area, based on BizBuySell.com's quarterly reports.
If you are interested in what cash flows are for a business in Oklahoma City, BizBuySell.com determined that the median cash flow for Oklahoma City area businesses was $96,000 in Q4 2008.
Things to Consider When Buying a Business in Oklahoma City, OK
Sellers want to be sure their business will continue to be successful. They want to find a buyer who has experience and will take care of the company's employees. As such, you are selling yourself to the current business owner and the professional team that represents the seller. You may think you are buying, but you also need to be selling. This useful tip for buying a business was provided by Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.
Business Valuations for Oklahoma City, OK Businesses
If you have a specific business in mind and want to find out how much a business is worth, 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.
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