Q2 2009 Business Valuation Data

Business Valuations for Santa Clara, CA

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

Q2 2009 Business Valuations in Santa Clara, CA

According to the latest data compiled by BizBuySell.com, Santa Clara 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 Santa Clara, 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. 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 $416,326 in Q2 2009.

To put this in perspective, the Q2 2008 revenue multiple was 0.78 and the median revenue for selling businesses was $425,500.

Q2 2009 Cash Flow Multiples In Santa Clara, 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 San Jose-Sunnyvale-Santa Clara, CA metro area was 3.52.

BizBuySell.com found that the median cash flow for Santa Clara 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 Santa Clara 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 Santa Clara, but they are in the area and so are probably representative of Santa Clara business valuations.

Tips for Santa Clara, CA Business Valuations

The things that business buyers value most is growing and predictable cash flow. If you've got predictable and growing cash flow, the odds are you are going to be happy with the business valuation you get. This helpful tip comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.

Business Valuations for Santa Clara, CA 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 Santa Clara, CA Business Valuations

With respect to local trends in business-for-sale asking prices, here are the median asking prices for businesses 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 Santa Clara area, based on BizBuySell.com's economic data.

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 Santa Clara 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

Share this article


Additional Resources for Entrepreneurs

Lists of Venture Capital and Private Equity Firms

Franchise Opportunities

Contributors

Business Glossary