Q2 2009 Business Valuation Data
Business Valuations for Scottsdale, AZ
Here's the latest BizBuySell.com Scottsdale, Arizona business-for-sale data on local business valuations.
Q2 2009 Business Valuations in Scottsdale, AZ
Based on statistics prepared by BizBuySell.com, Scottsdale listings for businesses for sale in Q2 2009 had a median asking price of $190,000.
The median ask price for selling businesses was $225,000 in Q2 2008.
Q2 2009 Revenue Multiples In Scottsdale, AZ
In the Phoenix-Mesa-Scottsdale, AZ metro area, businesses will on average sell for 0.84 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 $305,812 in Q2 2009.
As a reference point, the Q2 2008 revenue multiple was 0.88 and the median revenue for selling businesses was $340,100.
Q2 2009 Cash Flow Multiples In Scottsdale, AZ
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 Phoenix-Mesa-Scottsdale, AZ metro area was 3.10.
BizBuySell.com reports that the median cash flow for Scottsdale area businesses was $77,492 in Q2 2009. In Q2 2008, cash flow multiples clocked in at 3.26 and the median cash flow was $84,526.
Number of Scottsdale Businesses for Sale in the Dataset
The study data comprised 1220 listings in the Phoenix-Mesa-Scottsdale, AZ metro area. As such, some of the businesses used to derive the median valuation might be outside of Scottsdale, but they are close by and so are probably representative of Scottsdale business valuations.
Considerations When Valuing a Business in Scottsdale, AZ
Remember that once you sell the business, your role as a revenue and profit generator will disappear. If a business is overly reliant on the talents of the current owner, buyers will value the business at a lower price, knowing that cash flow will be adversely impacted by the absence of the current owner. This useful business valuation advice comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.
Business Valuations for Scottsdale, AZ 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 Scottsdale, AZ Business Valuations
With respect to local trends in business-for-sale asking prices, here are the median asking prices for companies in the Phoenix-Mesa-Scottsdale, AZ metro area for the last 10 quarters.
The chart below shows how median revenue multiples are trending in the Scottsdale area, based on BizBuySell.com's quarterly reports.
Here is how cash flow multiples are trending in the Scottsdale area, based on BizBuySell.com's quarterly reports.
Flow Multiple
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