Q1 2009 Costs to Buy a Business
How Much Is My New Bedford Business Worth?
We just received the latest New Bedford, Massachusetts business valuation data for First Quarter 2009.
New Bedford, MA Q1 2009 Business Valuations
According to statistics issued by BizBuySell.com, New Bedford 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. Because the median ask price for businesses for sale in New Bedford has risen year over year, we can conclude that many smaller firms in New Bedford 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 New Bedford company for much less. Similarly, some New Bedford businesses may be selling for much more.
Also, this is the asking price for a New Bedford 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 New Bedford Businesses for Sale in the Dataset
The study data comprised 201 listings in the Providence-New Bedford-Fall River, RI-MA metro area. As such, some of the businesses used to derive the median valuation might be outside of New Bedford, but they are in the area and so are likely representative of New Bedford business valuations.
One year ago, in Q1 2008, the BizBuySell.com dataset for New Bedford spanned 252 listings. The downward trend in the number of New Bedford business-for-sale listings is indicative of the current down economy.
Q1 2009 Revenue Multiples In New Bedford, MA
In the Providence-New Bedford-Fall River, RI-MA metro area, businesses will typically sell for 0.70 times the selling company's revenues. This was the mean revenue multiple for Q1 2009 in this part 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 New Bedford and surrounding communities. Some 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 $365,000 in Q1 2009.
To put this in perspective, the Q1 2008 revenue multiple was 0.80 and the median revenue for listed businesses was $327,500.
Q1 2009 Cash Flow Multiples In New Bedford, MA
Cash flow multiples are another common way 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 company 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. Cash flow multiples will usually vary considerably based on many factors.
If you are interested in what cash flows are for a business in New Bedford, BizBuySell.com found that the median cash flow for New Bedford 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.
Tips for New Bedford, MA Business Sellers
When selling a business, valuations will be based on your profits. So, be sure to sell a business at a point when your profits are doing well if you want to sell for a great price. This helpful tip comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.
Business Valuations for New Bedford, 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 New Bedford, 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 trending in the New Bedford area, based on BizBuySell.com's quarterly reports.
Here is how cash flow multiples are trending in the New Bedford area, based on BizBuySell.com's quarterly reports.
Flow Multiple
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