Q1 2009 Costs to Buy a Business
How Much Is My Marietta Business Worth?
BizBuySell.com has just released its Marietta, Georgia business valuation data for First Quarter 2009.
Q1 2009 Business Valuations in Marietta, GA
According to statistics issued by BizBuySell.com, Marietta business-for-sale listings in Q1 2009 had a median asking price of $249,000.
That compares to a median ask price of $250,000 in Q1 2008. Given that Marietta, GA median business asking prices appear to be dropping, it suggests that larger Marietta businesses in may be holding off on selling until the economy turns around.
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 Marietta company for much less. Alternatively, some Marietta businesses may be selling for much more.
Another thing to remember is that this is the asking price for a Marietta 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. So, a business listed for $100,000 might sell for between $85,000 and $90,000.
Number of Marietta Businesses for Sale in the Dataset
The study data comprised 929 listings in the Atlanta-Sandy Springs-Marietta, GA metro area. As such, some of the businesses used to derive the median valuation might be outside of Marietta, but they are in the area and so are probably representative of Marietta business valuations.
One year ago, in Q1 2008, the BizBuySell.com dataset for Marietta spanned 969 listings. The downward trend in the number of Marietta business-for-sale listings is indicative of the current down economy.
Q1 2009 Revenue Multiples In Marietta, GA
In the Atlanta-Sandy Springs-Marietta, GA metro area, companies will usually sell for 0.98 times the selling company's revenues. The data indicates that is 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 $195,955. 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 $375,114 in Q1 2009.
To give this some context, the Q1 2008 revenue multiple was 1.02 and the median revenue for listed businesses was $358,208.
Q1 2009 Cash Flow Multiples In Marietta, GA
Cash flow multiples are another useful method to value a business.
For Q1 2009, the average cash flow multiple for listed businesses in the Atlanta-Sandy Springs-Marietta, GA metro area was 3.52.
So, a company with cash flows of $150,000 might have an asking price of $528,425. That calculation is dependent on the business selling for the area's average multiple. Most businesses will not conform to industry- or area averages.
In case you were wondering what typical cash flows are for a business in Marietta, BizBuySell.com found that the median cash flow for Marietta area businesses was $100,000 in Q1 2009. In Q1 2008, cash flow multiples clocked in at 3.56 and the median cash flow was $94,823.
Things to Consider When Selling a Business in Marietta, GA
Selling a business can be a full-time job in and of itself. If you sell on your own, without assistance from a business broker, you may be distracted from running the business, which can result in a deterioriation in business results and a lower sale price. This helpful advice was provided by Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.
Business Valuations for Marietta, GA 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 additional information.
Historical Data for Marietta, GA Business Valuations
If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses for sale in the Atlanta-Sandy Springs-Marietta, GA metro area for the last 9 quarters.
Here is how median revenue multiples are moving in the Marietta area, based on BizBuySell.com's economic data.
The table below shows how cash flow multiples are trending in the Marietta area, based on BizBuySell.com's quarterly reports.
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