Q1 2009 Costs to Buy a Business
How Much Is My Fall River Business Worth?
Every quarter, BizBuySell.com published business valuation data, and we now have their latest Fall River, Massachusetts business valuation data for First Quarter 2009.
Fall River, MA Q1 2009 Business Valuations
Based on data compiled by BizBuySell.com, Fall River business-for-sale listings in Q1 2009 had a median asking price of $179,000.
That compares to a median ask price of $165,000 in Q1 2008. Since the median ask price for businesses for sale in Fall River has gone up year over year, we can conclude that many smaller businesses in Fall River 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 Fall River company for much less. Similarly, some Fall River businesses may be selling for much more.
Another thing to remember is that this is the asking price for a Fall River business. When a business owner lists a company for sale, they typically set a price that ends up being more than the eventual sale price. A sale-to-ask ratio typically might be between 0.85 and 0.90, but of course it varies considerably. So, a business listed for $100,000 might sell for between $85,000 and $90,000.
Number of Fall River Businesses for Sale in the Dataset
The study data comprised 201 listings in the Providence-New Bedford-Fall River, RI-MA metro area. Many of the businesses in the dataset are outside of Fall River, but they are in the area and so are probably representative of Fall River business valuations.
One year ago, in Q1 2008, the BizBuySell.com dataset for Fall River spanned 252 listings. The downward trend in the number of Fall River business-for-sale listings is indicative of the current down economy.
Q1 2009 Revenue Multiples In Fall River, MA
In the Providence-New Bedford-Fall River, RI-MA metro area, businesses will usually sell for 0.70 times the selling company's revenues. This was 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 $139,779. Remember, however, that this is just 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 $365,000 in Q1 2009.
As a reference point, the Q1 2008 revenue multiple was 0.80 and the median revenue for listed businesses was $327,500.
Q1 2009 Cash Flow Multiples In Fall River, MA
Cash flow multiples are another useful method to value a business.
For Q1 2009, the average cash flow multiple for listed businesses in the Providence-New Bedford-Fall River, RI-MA metro area was 3.14.
So, a business with cash flows of $150,000 might have an asking price of $471,136. That's only if the firm complies with the local average. Most businesses will not conform to industry- or area averages.
If you are interested in what cash flows are for a business in Fall River, BizBuySell.com determined that the median cash flow for Fall River area businesses was $84,170 in Q1 2009. In Q1 2008, cash flow multiples clocked in at 3.22 and the median cash flow was $75,166.
Things to Consider When Selling a Business in Fall River, MA
Before you sell a business, you will need to recast your financials to adjust for what the business owner takes out of the business. This includes things like a high salary, car expenses and other owner perks. This useful tip comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.
Business Valuations for Fall River, MA Businesses
If you are contemplating buying a business or selling a business and would like to look at comparables in the area, 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 Fall River, MA Business Valuations
If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Providence-New Bedford-Fall River, RI-MA metro area for the last 9 quarters.
Here is how median revenue multiples are moving in the Fall River area, based on BizBuySell.com's quarterly reports.
The table below shows how cash flow multiples are trending in the Fall River area, based on BizBuySell.com's quarterly reports.
Flow Multiple
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