Q1 2009 Costs to Buy a Business
How Much Is My Miami Beach Business Worth?
We just received the latest Miami Beach, Florida statistics on business valuations for First Quarter 2009.
Q1 2009 Business Valuations in Miami Beach, FL
According to statistics issued by BizBuySell.com, Miami Beach 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. One interpretation of the lower median asking price is that Miami Beach, FL sellers are dropping their asking prices in light of market conditions.
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 Miami Beach company for much less. However, some Miami Beach businesses may be selling for much more.
Another thing to remember is that this is the asking price for a Miami Beach 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. Given this industry statistic, if a small business owner were to list a company for $300,000, it might sell for between $255,000 and $270,000.
Number of Miami Beach 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 Miami Beach, but they are close by and so are probably representative of Miami Beach business valuations.
In Q1 2008, just one year ago, there were 2218 Miami Beach listings in the BizBuySell.com dataset. As a result of the recession, fewer Miami Beach business owners are selling because they hope to weather the storm and sell after the economy turns around.
Q1 2009 Revenue Multiples In Miami Beach, FL
In the Miami-Fort Lauderdale-Miami Beach, FL metro area, companies will usually sell for 0.89 times the selling company's revenues. The data indicates that is the mean revenue multiple for Q1 2009 in this metro area.
In other words, a firm with revenues of $200,000 might list for $178,065. Remember, however, that this is only 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 $424,660 in Q1 2009.
To put this in perspective, the Q1 2008 revenue multiple was 0.98 and the median revenue for listed businesses was $460,942.
Q1 2009 Cash Flow Multiples In Miami Beach, FL
Cash flow multiples are another popular technique 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 business 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. Most businesses will not conform to industry- or area averages.
If you are interested in what cash flows are for a business in Miami Beach, BizBuySell.com reports that the median cash flow for Miami Beach 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 Miami Beach, FL
The best time to sell a business is when you don't have to sell the business. If you have to sell under time pressure, you are not likely to get the best sale price. So, don't wait to sell a business until something (e.g. bad health, a divorce, etc.) forces you to sell. This advice on selling a business comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.
Business Valuations for Miami Beach, 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 more information.
Historical Data for Miami Beach, FL 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 Miami-Fort Lauderdale-Miami Beach, FL metro area for the last 9 quarters.
Here is how median revenue multiples are tracking in the Miami Beach area, based on BizBuySell.com's quarterly reports.
The table below shows how cash flow multiples are trending in the Miami Beach area, based on BizBuySell.com's quarterly reports.
Flow Multiple
Share this article
Additional Resources for Entrepreneurs