Q2 2009 Business Valuation Data

Business Valuations for Sacramento, CA

BizBuySell.com has published its latest business valuation data, including Sacramento, California small company business valuation data for Second Quarter 2009.

Q2 2009 Business Valuations in Sacramento, CA

According to the latest data compiled by BizBuySell.com, Sacramento listings for businesses for sale in Q2 2009 had a median asking price of $225,000.

The median ask price for selling businesses was $199,000 in Q2 2008.

Q2 2009 Revenue Multiples In Sacramento, CA

In the Sacramento--Arden-Arcade--Roseville, CA metro area, small businesses will usually sell for 0.75 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 $430,417 in Q2 2009.

In terms of trending year over year, the Q2 2008 revenue multiple was 0.77 and the median revenue for selling businesses was $389,148.

Q2 2009 Cash Flow Multiples In Sacramento, CA

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

For Q2 2009, the average cash flow multiple for listed businesses in the Sacramento--Arden-Arcade--Roseville, CA metro area was 3.38.

BizBuySell.com reports that the median cash flow for Sacramento area businesses was $90,741 in Q2 2009. In Q2 2008, cash flow multiples clocked in at 3.33 and the median cash flow was $88,000.

Number of Sacramento Businesses for Sale in the Dataset

The study data comprised 160 listings in the Sacramento--Arden-Arcade--Roseville, CA metro area. As such, some of the businesses used to derive the median valuation might be outside of Sacramento, but they are in the area and so are probably representative of Sacramento business valuations.

Considerations When Valuing a Business in Sacramento, CA

Don't hire somebody who is a financial wizard to calculate your business valuation. When valuing a company, having knowledge of the market that exists during the time you're trying to sell is the best way to value a company. A spreadsheet guru may know how to build a killer financial model, but they won't have access to that kind of business comparables data. This advice on how to value a business comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.

Business Valuations for Sacramento, CA 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 Sacramento, CA Business Valuations

With respect to local trends in business-for-sale asking prices, here are the median asking prices for businesses in the Sacramento--Arden-Arcade--Roseville, CA metro area for the last 10 quarters.

Quarter
Median Ask
Q1 2007
$299,900
Q2 2007
$249,000
Q3 2007
$240,000
Q4 2007
$225,000
Q1 2008
$217,500
Q2 2008
$199,000
Q3 2008
$199,000
Q4 2008
$229,450
Q1 2009
$228,000
Q2 2009
$225,000

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

Quarter
Revenue Multiple
Q1 2007
0.67
Q2 2007
0.73
Q3 2007
0.76
Q4 2007
0.74
Q1 2008
0.81
Q2 2008
0.77
Q3 2008
0.76
Q4 2008
0.72
Q1 2009
0.73
Q2 2009
0.75

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

Quarter
Median Cash
Flow Multiple
Q1 2007
2.72
Q2 2007
3.19
Q3 2007
3.47
Q4 2007
3.65
Q1 2008
3.62
Q2 2008
3.33
Q3 2008
3.18
Q4 2008
3.24
Q1 2009
3.24
Q2 2009
3.38

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