Q2 2009 Business Valuation Data

Business Valuations for Northern New Jersey, NJ

BizBuySell.com has published its latest business valuation data, including Northern New Jersey, New Jersey small company business valuation data for Second Quarter 2009.

Northern New Jersey, NJ Q2 2009 Business Valuations

According to the latest data compiled by BizBuySell.com, Northern New Jersey listings for businesses for sale in Q2 2009 had a median asking price of $250,000.

The median ask price for selling businesses was $257,000 in Q2 2008.

Northern New Jersey, NJ Q2 2009 Revenue Multiples

In the New York-Northern New Jersey-Long Island, NY-NJ-PA metro area, companies will usually sell for 0.82 times the selling company's revenues. This was 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 $448,944 in Q2 2009.

To put this in perspective, the Q2 2008 revenue multiple was 0.87 and the median revenue for selling businesses was $425,000.

Q2 2009 Cash Flow Multiples In Northern New Jersey, NJ

Cash flow multiples are a useful metric that is used to value a business.

For Q2 2009, the average cash flow multiple for listed businesses in the New York-Northern New Jersey-Long Island, NY-NJ-PA metro area was 2.91.

BizBuySell.com reports that the median cash flow for Northern New Jersey area businesses was $119,204 in Q2 2009. In Q2 2008, cash flow multiples clocked in at 2.94 and the median cash flow was $118,840.

Number of Northern New Jersey Businesses for Sale in the Dataset

The study data comprised 4822 listings in the New York-Northern New Jersey-Long Island, NY-NJ-PA metro area. As such, some of the businesses used to derive the median valuation might be outside of Northern New Jersey, but they are in the area and so are probably representative of Northern New Jersey business valuations.

Tips for Northern New Jersey, NJ Business Valuations

Long before you want to sell a business, it's a good idea to hire a business valuation consultant to get a feel for what a business is worth. By doing this, you'll learn how to value a business and will identify many improvements you can make to improve the valuation for your business. This good valuing-a-business tip comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.

Business Valuations for Northern New Jersey, NJ Businesses

If you are contemplating buying a business or selling a business and would like to find out how much a business is worth, 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 Northern New Jersey, NJ Business Valuations

With respect to local trends in business-for-sale asking prices, here are the median asking prices for businesses in the New York-Northern New Jersey-Long Island, NY-NJ-PA metro area for the last 10 quarters.

Quarter
Median Ask
Q1 2007
$268,500
Q2 2007
$250,000
Q3 2007
$250,000
Q4 2007
$250,000
Q1 2008
$250,000
Q2 2008
$257,000
Q3 2008
$250,000
Q4 2008
$250,000
Q1 2009
$250,000
Q2 2009
$250,000

The chart below shows how median revenue multiples are trending in the Northern New Jersey area, based on BizBuySell.com's data.

Quarter
Revenue Multiple
Q1 2007
0.87
Q2 2007
0.83
Q3 2007
0.88
Q4 2007
0.87
Q1 2008
0.87
Q2 2008
0.87
Q3 2008
0.84
Q4 2008
0.83
Q1 2009
0.82
Q2 2009
0.82

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

Quarter
Median Cash
Flow Multiple
Q1 2007
2.95
Q2 2007
2.94
Q3 2007
2.99
Q4 2007
2.95
Q1 2008
2.94
Q2 2008
2.94
Q3 2008
2.91
Q4 2008
2.91
Q1 2009
2.91
Q2 2009
2.91

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