Q1 2009 Costs to Buy a Business
How Much Is My Paradise Business Worth?
We just received the latest Paradise, Nevada business valuation data for First Quarter 2009.
Q1 2009 Business Valuations in Paradise, NV
According to statistics issued by BizBuySell.com, Paradise business-for-sale listings in Q1 2009 had a median asking price of $207,500.
That compares to a median ask price of $225,000 in Q1 2008. Given that Paradise, NV median business asking prices appear to be dropping, it suggests that larger Paradise 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 Paradise company for much less. Similarly, some Paradise businesses may be selling for much more.
Also, this is the asking price for a Paradise business. When a business owner lists a business 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. If an owner lists a business for $150,000, it might end up selling for between $127,500 and $135,000.
Number of Paradise Businesses for Sale in the Dataset
The study data comprised 388 listings in the Las Vegas-Paradise, NV metro area. As such, some of the businesses used to derive the median valuation might be outside of Paradise, but they are close by and so are likely representative of Paradise business valuations.
One year ago, in Q1 2008, the BizBuySell.com dataset for Paradise spanned 505 listings. The downward trend in the number of Paradise business-for-sale listings is indicative of the current down economy.
Q1 2009 Revenue Multiples In Paradise, NV
In the Las Vegas-Paradise, NV metro area, businesses will typically sell for 0.81 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 firm with revenues of $200,000 might list for $161,092. Remember, however, that this is simply 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 $366,958 in Q1 2009.
In terms of trending year over year, the Q1 2008 revenue multiple was 0.88 and the median revenue for listed businesses was $385,000.
Q1 2009 Cash Flow Multiples In Paradise, NV
Cash flow multiples are another common way to value a business.
For Q1 2009, the average cash flow multiple for listed businesses in the Las Vegas-Paradise, NV metro area was 3.16.
So, a business with cash flows of $150,000 might have an asking price of $474,540. That calculation is dependent on the business selling for the area's average multiple. Most businesses will not conform to industry- or area averages.
If you are interested in what cash flows are for a business in Paradise, BizBuySell.com reports that the median cash flow for Paradise area businesses was $96,790 in Q1 2009. In Q1 2008, cash flow multiples clocked in at 3.02 and the median cash flow was $100,000.
Things to Consider When Selling a Business in Paradise, NV
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 Paradise, NV Businesses
If you are contemplating buying a business or selling a business and would like to value a specific business, 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 Paradise, NV Business Valuations
If you are interested in trends in business-for-sale asking prices, here are the median asking prices for companies in the Las Vegas-Paradise, NV metro area for the last 9 quarters.
Here is how median revenue multiples are trending in the Paradise area, based on BizBuySell.com's quarterly reports.
The table below shows how cash flow multiples are trending in the Paradise area, based on BizBuySell.com's quarterly reports.
Flow Multiple
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