September 26, 2020  
 
  Articles for Entrepreneurs  
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Q3 2009 Business Valuation Data

 

 

Sell My Alameda, CA Business

We just received the latest Alameda, California business valuation data for Third Quarter 2009.

Median Ask Prices for Alameda, CA Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for companies in the Contra Costa-Alameda-Solano, CA metro area for the last 11 quarters.

Quarter

Median Ask

Q2 2007

$287,000

Q2 2008

$250,000

Q3 2008

$250,000

Q4 2008

$222,000

Q1 2009

$230,000

Q2 2009

$225,000

Q3 2009

$225,000

As you can see from the chart above, Alameda business-for-sale listings in Q3 2009 had a median asking price of $225,000.

That compares to a median ask price of $250,000 in Q3 2008. Given that Alameda, CA median business asking prices appear to be dropping, it suggests that selling Alameda businesses may be lowering their prices to make their businesses more attractive to buyers.

Revenue Multiples for Alameda, CA Businesses

Here is how median revenue multiples are trending in the Alameda area, based on BizBuySell.com's quarterly reports.

Quarter

Revenue Multiple

Q2 2007

0.85

Q2 2008

0.74

Q3 2008

0.75

Q4 2008

0.70

Q1 2009

0.59

Q2 2009

0.58

Q3 2009

0.57

In the Contra Costa-Alameda-Solano, CA metro area, small companies will typically sell for 0.57 times the selling company's revenues. As shown in the chart above, that was the mean revenue multiple for Q3 2009 in this area of the country.

In other words, a business that has revenues of $150,000 might list for $84,834. Keep in mind that this is simply an average for revenue multiples in the area. Some firms will have higher revenue multiples and others will have lower revenue multiples.

According to BizBuySell.com, the median revenues for its Alameda business-for-sale listings was $511,794 in Q3 2009.

As a reference point, the Q3 2008 revenue multiple was 0.75 and the median revenue for listed Alameda businesses was $443,827.

Cash Flow Multiples for Alameda, CA Businesses

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

Quarter

Median Cash
Flow Multiple

Q2 2007

3.31

Q2 2008

3.47

Q3 2008

3.51

Q4 2008

3.44

Q1 2009

3.22

Q2 2009

3.17

Q3 2009

2.93

As you probably know, cash flow multiples are another useful method to value a business.

For Q3 2009, the average cash flow multiple for businesses listed in the Contra Costa-Alameda-Solano, CA metro area was 2.93.

So, a company with cash flows of $110,000 might list for $322,816. That's only if the firm complies with the local average. In practice, cash flow multiples can vary considerably from one business type to another.

If you are interested in what cash flows are for a business in Alameda, BizBuySell.com determined that the median cash flow for Alameda area businesses was $100,000 in Q3 2009. In Q3 2008, Alameda cash flow multiples averaged 3.51 and the median cash flow was $100,000.

Number of Alameda Businesses for Sale in the Dataset

The study data comprised 158 listings in the Contra Costa-Alameda-Solano, CA metro area. Many of the businesses in the dataset are outside of Alameda, but they are close by and so are likely representative of Alameda business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for Alameda spanned 253 listings. The downward trend in the number of Alameda business-for-sale listings is indicative of the current down economy.

Should I Sell My Alameda, CA Business Now?

Selling a business now is the right decision for many business owners. That's because it's a great time to sell given the sheer number of buyers in the marketplace right now. Laid-off executives, for example, our turning to entrepreneurship and are actively exploring business-for-sale opportunities. If your business has solid fundamentals and you have a good plan, your next step should be to talk to a professional intermediary who can help you to package up the business for sale and get maximize your business sale price. This helpful tip comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Alameda, CA Businesses

If you are thinking about buying a business or selling a business and would like to look at completed transaction sale price comparables in the area, we recommend the BizBuySell.com Business Valuation Tool. Based on your specific criteria, you can modify the company dataset that creates business valuation estimates. Access to the tool is very reasonable -- costing less than $100.

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.

 

 

 

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