Q2 2009 Business Valuation Data

Business Valuations for San Jose, CA

Here's the latest BizBuySell.com San Jose, California business valuation statistics for Second Quarter 2009.

Q2 2009 Business Valuations in San Jose, CA

According to the latest data compiled by BizBuySell.com, San Jose listings for businesses for sale in Q2 2009 had a median asking price of $295,000.

The median ask price for selling businesses was $249,500 in Q2 2008.

Q2 2009 Revenue Multiples In San Jose, CA

In the San Jose-Sunnyvale-Santa Clara, CA metro area, small businesses will on average sell for 0.89 times the selling company's revenues. That 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 $416,326 in Q2 2009.

To give this some context, the Q2 2008 revenue multiple was 0.78 and the median revenue for selling businesses was $425,500.

Q2 2009 Cash Flow Multiples In San Jose, CA

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

For Q2 2009, the average cash flow multiple for businesses listed in the San Jose-Sunnyvale-Santa Clara, CA metro area was 3.52.

BizBuySell.com found that the median cash flow for San Jose area businesses was $103,532 in Q2 2009. In Q2 2008, cash flow multiples clocked in at 3.28 and the median cash flow was $101,000.

Number of San Jose Businesses for Sale in the Dataset

The study data comprised 134 listings in the San Jose-Sunnyvale-Santa Clara, CA metro area. As such, some of the businesses used to derive the median valuation might be outside of San Jose, but they are nearby and so are likely representative of San Jose business valuations.

Considerations When Valuing a Business in San Jose, CA

When calculating a company valuation, three very important factors are the nature of the business, the risk involved, and the growth, stability or irregularity of earnings and cash flows. This useful tip comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.

Business Valuations for San Jose, 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 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 San Jose, CA Business Valuations

With respect to local trends in business-for-sale asking prices, here are the median asking prices for companies in the San Jose-Sunnyvale-Santa Clara, CA metro area for the last 10 quarters.

Quarter
Median Ask
Q1 2007
$189,500
Q2 2007
$239,000
Q3 2007
$265,000
Q4 2007
$250,000
Q1 2008
$249,000
Q2 2008
$249,500
Q3 2008
$250,000
Q4 2008
$260,000
Q1 2009
$260,000
Q2 2009
$295,000

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

Quarter
Revenue Multiple
Q1 2007
0.85
Q2 2007
0.79
Q3 2007
0.71
Q4 2007
0.68
Q1 2008
0.74
Q2 2008
0.78
Q3 2008
0.80
Q4 2008
0.82
Q1 2009
0.88
Q2 2009
0.89

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

Quarter
Median Cash
Flow Multiple
Q1 2007
2.91
Q2 2007
3.23
Q3 2007
3.00
Q4 2007
2.98
Q1 2008
3.35
Q2 2008
3.28
Q3 2008
3.42
Q4 2008
3.47
Q1 2009
3.60
Q2 2009
3.52

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