Q1 2009 Costs to Buy a Business
How Much Is My Kissimmee Business Worth?
We just received the latest Kissimmee, Florida business-for-sale statistics.
Q1 2009 Business Valuations in Kissimmee, FL
According to statistics issued by BizBuySell.com, Kissimmee business-for-sale listings in Q1 2009 had a median asking price of $194,000.
That compares to a median ask price of $190,000 in Q1 2008. Because the median ask price for businesses for sale in Kissimmee has risen year over year, we can conclude that many smaller firms in Kissimmee are holding off on selling.
To be clear, this is the median asking price for a business. If you want to buy a business, you may be able to buy a Kissimmee company for much less. However, some Kissimmee businesses may be selling for much more.
Another thing to remember is that this is the asking price for a Kissimmee business. When an 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 Kissimmee Businesses for Sale in the Dataset
The study data comprised 887 listings in the Orlando-Kissimmee, FL metro area. Many of the businesses in the dataset are outside of Kissimmee, but they are close by and so are probably representative of Kissimmee business valuations.
One year ago, in Q1 2008, the BizBuySell.com dataset for Kissimmee spanned 940 listings. The downward trend in the number of Kissimmee business-for-sale listings is indicative of the current down economy.
Q1 2009 Revenue Multiples In Kissimmee, FL
In the Orlando-Kissimmee, FL metro area, businesses will usually 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 $178,926. Remember, however, that this is just an average for revenue multiples in the area. Some small businesses 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 $326,860 in Q1 2009.
As a reference point, the Q1 2008 revenue multiple was 0.86 and the median revenue for listed businesses was $322,834.
Q1 2009 Cash Flow Multiples In Kissimmee, FL
Cash flow multiples are another common way to value a business.
For Q1 2009, the average cash flow multiple for businesses listed in the Orlando-Kissimmee, FL metro area was 3.05.
So, a business with cash flows of $150,000 might have an asking price of $457,157. That calculation is dependent on the business selling for the area's average multiple. Cash flow multiples will usually vary considerably based on many factors.
If you are interested in what cash flows are for a business in Kissimmee, BizBuySell.com reports that the median cash flow for Kissimmee area businesses was $82,812 in Q1 2009. In Q1 2008, cash flow multiples clocked in at 2.98 and the median cash flow was $83,519.
Things to Consider When Selling a Business in Kissimmee, FL
A diversified customer base is a great selling point to buyers. If you are preparing to sell a business and your customer base is not diversified, think about how you can diversify your customer base and thereby lower the risks for a buyer. By doing so, you can sell a business for a higher price. Ideally, no single customer should account for more than 10% of your revenues. This advice comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.
Business Valuations for Kissimmee, FL 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 published every quarter. If you find these trends interesting, take a moment to visit BizBuySell.com Insights Report for additional information.
Historical Data for Kissimmee, 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 Orlando-Kissimmee, FL metro area for the last 9 quarters.
Here is how median revenue multiples are changing in the Kissimmee area, based on BizBuySell.com's quarterly reports.
Here is how cash flow multiples are trending in the Kissimmee area, based on BizBuySell.com's quarterly reports.
Flow Multiple
Share this article
Additional Resources for Entrepreneurs