Q1 2009 Costs to Buy a Business

How Much Is My Bridgeport Business Worth?

We just received the latest Bridgeport, Connecticut business valuation data for First Quarter 2009.

Q1 2009 Business Valuations in Bridgeport, CT

According to statistics issued by BizBuySell.com, Bridgeport business-for-sale listings in Q1 2009 had a median asking price of $250,000.

That compares to a median ask price of $227,000 in Q1 2008. Since the median ask price for businesses for sale in Bridgeport has gone up year over year, we can conclude that many smaller businesses in Bridgeport are putting off selling.

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 Bridgeport company for much less. However, some Bridgeport businesses may be selling for much more.

Another thing to remember is that this is the asking price for a Bridgeport business. When a business owner lists a business 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 varies considerably. An owner who wants $275,000 might actually get between $233,750 and $247,500.

Number of Bridgeport Businesses for Sale in the Dataset

The study data comprised 143 listings in the Bridgeport-Stamford-Norwalk, CT metro area. As such, some of the businesses used to derive the median valuation might be outside of Bridgeport, but they are nearby and so are probably representative of Bridgeport business valuations.

In Q1 2008, just one year ago, there were 194 Bridgeport listings in the BizBuySell.com dataset. As a result of the recession, fewer Bridgeport business owners are selling because they hope to weather the storm and sell after the economy turns around.

Q1 2009 Revenue Multiples In Bridgeport, CT

In the Bridgeport-Stamford-Norwalk, CT metro area, businesses will usually sell for 0.85 times the selling company's revenues. The data indicates that is the mean revenue multiple for Q1 2009 in this area of the country.

In other words, a business that has revenues of $200,000 might list for $169,420. Remember, however, that this is simply an average for revenue multiples in the area. Some firms 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 $375,000 in Q1 2009.

As a reference point, the Q1 2008 revenue multiple was 0.66 and the median revenue for listed businesses was $400,720.

Q1 2009 Cash Flow Multiples In Bridgeport, CT

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

For Q1 2009, the average cash flow multiple for listed businesses in the Bridgeport-Stamford-Norwalk, CT metro area was 3.21.

So, a business with cash flows of $150,000 might have an asking price of $481,019. 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 Bridgeport, BizBuySell.com reports that the median cash flow for Bridgeport area businesses was $87,500 in Q1 2009. In Q1 2008, cash flow multiples clocked in at 2.66 and the median cash flow was $90,000.

Things to Consider When Selling a Business in Bridgeport, CT

When selling a business, think about how dependent the business is on you as the business owner. If the business is heavily dependent on your skills and your personal reputation, a buyer will pay less money for it. As such, it's important to make the business less dependent on you as you approach the time when you hope to sell. This advice on how to sell a company comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.

Business Valuations for Bridgeport, CT 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 more information.

Historical Data for Bridgeport, CT Business Valuations

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Bridgeport-Stamford-Norwalk, CT metro area for the last 9 quarters.

Quarter
Median Ask
Q1 2007
$265,000
Q2 2007
$211,000
Q3 2007
$229,000
Q4 2007
$225,000
Q1 2008
$227,000
Q2 2008
$239,500
Q3 2008
$249,998
Q4 2008
$255,000
Q1 2009
$250,000

Here is how median revenue multiples are changing in the Bridgeport area, based on BizBuySell.com's quarterly reports.

Quarter
Revenue Multiple
Q1 2007
0.79
Q2 2007
0.65
Q3 2007
0.64
Q4 2007
0.71
Q1 2008
0.66
Q2 2008
0.71
Q3 2008
0.73
Q4 2008
0.77
Q1 2009
0.85

Here is how cash flow multiples are trending in the Bridgeport area, based on BizBuySell.com's quarterly reports.

Quarter
Median Cash
Flow Multiple
Q1 2007
3.26
Q2 2007
2.76
Q3 2007
2.49
Q4 2007
2.60
Q1 2008
2.66
Q2 2008
2.80
Q3 2008
2.79
Q4 2008
2.92
Q1 2009
3.21

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