Q2 2009 Business Valuation Data
Business Valuations for Louisville, KY
Recently, BizBuySell.com released its latest Louisville, Kentucky business valuation statistics for Second Quarter 2009.
Q2 2009 Business Valuations in Louisville, KY
Based on statistics prepared by BizBuySell.com, Louisville listings for businesses for sale in Q2 2009 had a median asking price of $249,750.
The median ask price for selling businesses was $232,500 in Q2 2008.
Q2 2009 Revenue Multiples In Louisville, KY
In the Louisville-Jefferson County, KY-IN metro area, businesses will on average sell for 0.82 times the selling company's revenues. The data indicates that is the mean revenue multiple for Q2 2009 in this metro area.
According to the latest BizBuySell.com data, the median revenue for its listed businesses was $399,170 in Q2 2009.
To put this in perspective, the Q2 2008 revenue multiple was 0.89 and the median revenue for selling businesses was $370,000.
Q2 2009 Cash Flow Multiples In Louisville, KY
Cash flow multiples are a common way to value a business.
For Q2 2009, the average cash flow multiple for businesses listed in the Louisville-Jefferson County, KY-IN metro area was 4.09.
BizBuySell.com found that the median cash flow for Louisville area businesses was $77,000 in Q2 2009. In Q2 2008, cash flow multiples clocked in at 4.37 and the median cash flow was $74,369.
Number of Louisville Businesses for Sale in the Dataset
The study data comprised 66 listings in the Louisville-Jefferson County, KY-IN metro area. As such, some of the businesses used to derive the median valuation might be outside of Louisville, but they are in the area and so are likely representative of Louisville business valuations.
Considerations When Valuing a Business in Louisville, KY
The exit sale price for small businesses are frequently based on rules of thumb that are known to buyers. While finance academics may object to this approach, it is still very prevalent because it is an easy way to value a business and buyers often are willing to pay the amounts derived from such rules of thumb. This useful tip for valuing a company comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.
Business Valuations for Louisville, KY 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 Louisville, KY Business Valuations
With respect to local trends in business-for-sale asking prices, here are the median asking prices for businesses in the Louisville-Jefferson County, KY-IN metro area for the last 10 quarters.
The chart below shows how median revenue multiples are trending in the Louisville area, based on BizBuySell.com's quarterly reports.
The table below provides data on how cash flow multiples are trending in the Louisville area, based on BizBuySell.com's quarterly reports.
Flow Multiple
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