Q2 2009 Business Valuation Data

Business Valuations for Indianapolis, IN

Here's the latest BizBuySell.com Indianapolis, Indiana business valuation statistics for Second Quarter 2009.

Indianapolis, IN Q2 2009 Business Valuations

Based on statistics prepared by BizBuySell.com, Indianapolis listings for businesses for sale in Q2 2009 had a median asking price of $250,000.

The median ask price for selling businesses was $250,000 in Q2 2008.

Q2 2009 Revenue Multiples In Indianapolis, IN

In the Indianapolis-Carmel, IN metro area, companies will on average sell for 0.76 times the selling company's revenues. The data indicates that is the mean revenue multiple for Q2 2009 in this area of the country.

According to the latest BizBuySell.com data, the median revenue for its listed businesses was $381,000 in Q2 2009.

To give this some context, the Q2 2008 revenue multiple was 0.85 and the median revenue for selling businesses was $366,000.

Q2 2009 Cash Flow Multiples In Indianapolis, IN

Cash flow multiples are a common way to value a business.

For Q2 2009, the average cash flow multiple for listed businesses in the Indianapolis-Carmel, IN metro area was 3.10.

BizBuySell.com reports that the median cash flow for Indianapolis area businesses was $90,000 in Q2 2009. In Q2 2008, cash flow multiples clocked in at 3.47 and the median cash flow was $90,000.

Number of Indianapolis Businesses for Sale in the Dataset

The study data comprised 103 listings in the Indianapolis-Carmel, IN metro area. Many of the businesses in the dataset are outside of Indianapolis, but they are in the area and so are likely representative of Indianapolis business valuations.

Considerations When Valuing a Business in Indianapolis, IN

Remember that once you sell the business, your role as a revenue and profit generator will disappear. If a business is overly reliant on the talents of the current owner, buyers will value the business at a lower price, knowing that cash flow will be adversely impacted by the absence of the current owner. This useful business valuation advice comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.

Business Valuations for Indianapolis, IN 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 additional information.

Historical Data for Indianapolis, IN Business Valuations

With respect to local trends in business-for-sale asking prices, here are the median asking prices for businesses in the Indianapolis-Carmel, IN metro area for the last 10 quarters.

Quarter
Median Ask
Q1 2007
$155,000
Q2 2007
$180,000
Q3 2007
$257,500
Q4 2007
$277,000
Q1 2008
$257,000
Q2 2008
$250,000
Q3 2008
$250,000
Q4 2008
$242,500
Q1 2009
$250,000
Q2 2009
$250,000

The chart below shows how median revenue multiples are tracking in the Indianapolis area, based on BizBuySell.com's quarterly reports.

Quarter
Revenue Multiple
Q1 2007
0.70
Q2 2007
0.73
Q3 2007
0.90
Q4 2007
1.01
Q1 2008
1.03
Q2 2008
0.85
Q3 2008
0.86
Q4 2008
0.76
Q1 2009
0.76
Q2 2009
0.76

The table below provides data on how cash flow multiples are trending in the Indianapolis area, based on BizBuySell.com's quarterly reports.

Quarter
Median Cash
Flow Multiple
Q1 2007
3.66
Q2 2007
3.41
Q3 2007
4.09
Q4 2007
4.41
Q1 2008
3.74
Q2 2008
3.47
Q3 2008
3.38
Q4 2008
3.02
Q1 2009
3.46
Q2 2009
3.10

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