Q1 2009 Costs to Buy a Business
How Much Is My Alexandria Business Worth?
We just received the latest Alexandria, Virginia business-for-sale statistics.
Q1 2009 Business Valuations in Alexandria, VA
According to statistics issued by BizBuySell.com, Alexandria business-for-sale listings in Q1 2009 had a median asking price of $250,000.
That compares to a median ask price of $250,000 in Q1 2008. In spite of the difficult economy, Alexandria, VA business valuations appear to be relatively stable.
Please understand that this is the median asking price for a business. If you want to buy a business, you may be able to buy a Alexandria company for much less. However, some Alexandria businesses may be selling for much more.
Also, this is the asking price for a Alexandria business. When a business owner lists a company for sale, they typically set a price that ends up being more than the ultimate sale price. A sale-to-ask ratio typically might be between 0.85 and 0.90, but of course it depends on deal specifics. If an owner lists a business for $150,000, it might end up selling for between $127,500 and $135,000.
Number of Alexandria Businesses for Sale in the Dataset
The study data comprised 803 listings in the Washington-Arlington-Alexandria, DC-VA-MD-WV metro area. As such, some of the businesses used to derive the median valuation might be outside of Alexandria, but they are in the area and so are probably representative of Alexandria business valuations.
One year ago, in Q1 2008, the BizBuySell.com dataset for Alexandria spanned 997 listings. The downward trend in the number of Alexandria business-for-sale listings is indicative of the current down economy.
Alexandria, VA Q1 2009 Revenue Multiples
In the Washington-Arlington-Alexandria, DC-VA-MD-WV metro area, businesses will typically sell for 0.75 times the selling company's revenues. That was the mean revenue multiple for Q1 2009 in this part of the country.
In other words, a firm with revenues of $200,000 might list for $151,000. Remember, however, that this is simply an average for revenue multiples in the area. Some companies will have higher revenue multiples and others will have lower revenue multiples.
According to BizBuySell.com, the median revenues for its business-for-sale listings was $425,000 in Q1 2009.
In terms of trending year over year, the Q1 2008 revenue multiple was 0.72 and the median revenue for listed businesses was $444,602.
Q1 2009 Cash Flow Multiples In Alexandria, VA
Cash flow multiples are another common way to value a business.
For Q1 2009, the average cash flow multiple for listed businesses in the Washington-Arlington-Alexandria, DC-VA-MD-WV metro area was 3.04.
So, a business with cash flows of $150,000 might have an asking price of $456,113. That calculation is dependent on the business selling for the area's average multiple. Most businesses will not conform to industry- or area averages.
If you are interested in what cash flows are for a business in Alexandria, BizBuySell.com reports that the median cash flow for Alexandria area businesses was $100,000 in Q1 2009. In Q1 2008, cash flow multiples clocked in at 3.13 and the median cash flow was $100,000.
Tips for Alexandria, VA Business Sellers
Selling a business can be a highly emotional process. To many business owners, the business is their baby, the result of years of hard work. However, when selling a business, it's imperative to keep emotions in check. Be objective and rational and you'll get across the finish line in the best possible way. This good selling-a-business tip comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.
Business Valuations for Alexandria, VA Businesses
If you are contemplating buying a business or selling a business and would like to find out how much a business is worth, 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 additional information.
Historical Data for Alexandria, VA Business Valuations
If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Washington-Arlington-Alexandria, DC-VA-MD-WV metro area for the last 9 quarters.
Here is how median revenue multiples are trending in the Alexandria area, based on BizBuySell.com's economic data.
The table below shows how cash flow multiples are trending in the Alexandria area, based on BizBuySell.com's quarterly reports.
Flow Multiple
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