Q1 2009 Costs to Buy a Business
How Much Is My Fort Lauderdale Business Worth?
BizBuySell.com has just released its Fort Lauderdale, Florida business valuation data for First Quarter 2009.
Fort Lauderdale, FL Q1 2009 Business Valuations
According to statistics issued by BizBuySell.com, Fort Lauderdale business-for-sale listings in Q1 2009 had a median asking price of $265,000.
That compares to a median ask price of $299,000 in Q1 2008. Given that Fort Lauderdale, FL median business asking prices appear to be dropping, it suggests that larger Fort Lauderdale businesses in may be holding off on selling until the economy turns around.
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 Fort Lauderdale company for much less. However, some Fort Lauderdale businesses may be selling for much more.
Also, this is the asking price for a Fort Lauderdale business. When an 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. So, a business listed for $100,000 might sell for between $85,000 and $90,000.
Number of Fort Lauderdale Businesses for Sale in the Dataset
The study data comprised 1986 listings in the Miami-Fort Lauderdale-Miami Beach, FL metro area. Many of the businesses in the dataset are outside of Fort Lauderdale, but they are in the area and so are probably representative of Fort Lauderdale business valuations.
In Q1 2008, just one year ago, there were 2218 Fort Lauderdale listings in the BizBuySell.com dataset. As a result of the recession, fewer Fort Lauderdale business owners are selling because they hope to weather the storm and sell after the economy turns around.
Fort Lauderdale, FL Q1 2009 Revenue Multiples
In the Miami-Fort Lauderdale-Miami Beach, FL metro area, companies will typically sell for 0.89 times the selling company's revenues. That 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 $178,065. Remember, however, that this is strictly an average for revenue multiples in Fort Lauderdale and surrounding communities. Some entities 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 $424,660 in Q1 2009.
As a reference point, the Q1 2008 revenue multiple was 0.98 and the median revenue for listed businesses was $460,942.
Q1 2009 Cash Flow Multiples In Fort Lauderdale, FL
Cash flow multiples are another useful method to value a business.
For Q1 2009, the average cash flow multiple for listed businesses in the Miami-Fort Lauderdale-Miami Beach, FL metro area was 3.22.
So, a company with cash flows of $150,000 might have an asking price of $482,754. That's only if the firm complies with the local average. Cash flow multiples will usually vary considerably based on many factors.
If you are interested in what cash flows are for a business in Fort Lauderdale, BizBuySell.com reports that the median cash flow for Fort Lauderdale area businesses was $109,514 in Q1 2009. In Q1 2008, cash flow multiples clocked in at 3.38 and the median cash flow was $115,055.
Things to Consider When Selling a Business in Fort Lauderdale, FL
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 Fort Lauderdale, FL Businesses
If you are contemplating buying a business or selling a business and would like to get an estimated business valuation, 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 Fort Lauderdale, FL Business Valuations
If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Miami-Fort Lauderdale-Miami Beach, FL metro area for the last 9 quarters.
Here is how median revenue multiples are changing in the Fort Lauderdale area, based on BizBuySell.com's quarterly reports.
Here is how cash flow multiples are trending in the Fort Lauderdale area, based on BizBuySell.com's quarterly reports.
Flow Multiple
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