September 20, 2020  
 
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Q3 2009 Business Valuation Data

 

 

Sell My Albany, NY Business

We just received the latest Albany, New York business valuation data for Third Quarter 2009.

Median Ask Prices for Albany, NY Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses for sale in the Albany-Schenectady-Troy, NY metro area for the last 11 quarters.

Quarter

Median Ask

Q1 2007

$399,000

Q2 2007

$450,000

Q3 2007

$499,000

Q4 2007

$524,500

Q1 2008

$479,000

Q2 2008

$499,000

Q3 2008

$496,500

Q4 2008

$495,000

Q1 2009

$444,950

Q2 2009

$379,000

Q3 2009

$369,500

As you can see from the chart above, Albany business-for-sale listings in Q3 2009 had a median asking price of $369,500.

That compares to a median ask price of $496,500 in Q3 2008. The lower median asking price in last quarter suggests that Albany, NY sellers are dropping their asking prices in light of market conditions. This is making it possible for more business-for-sale transactions to close.

Revenue Multiples for Albany, NY Businesses

Here is how median revenue multiples are trending in the Albany area, based on BizBuySell.com's economic data.

Quarter

Revenue Multiple

Q1 2007

1.70

Q2 2007

2.14

Q3 2007

1.86

Q4 2007

1.88

Q1 2008

1.90

Q2 2008

1.85

Q3 2008

1.86

Q4 2008

2.02

Q1 2009

1.92

Q2 2009

1.74

Q3 2009

1.72

In the Albany-Schenectady-Troy, NY metro area, companies will usually sell for 1.72 times the selling company's revenues. The data from BizBuySell.com indicates that is the mean revenue multiple for Q3 2009 in this area of the country.

In other words, a firm with revenues of $150,000 might list for $257,799. Remember, however, that this is just an average for revenue multiples in Albany and surrounding communities. Some businesses will have higher revenue multiples and others will have lower revenue multiples.

According to BizBuySell.com, the median revenues for its Albany business-for-sale listings was $400,000 in Q3 2009.

To put this in perspective, the Q3 2008 revenue multiple was 1.86 and the median revenue for listed Albany businesses was $420,000.

Cash Flow Multiples for Albany, NY Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

3.49

Q2 2007

4.46

Q3 2007

4.27

Q4 2007

4.21

Q1 2008

4.30

Q2 2008

4.34

Q3 2008

4.29

Q4 2008

4.94

Q1 2009

4.97

Q2 2009

4.59

Q3 2009

4.49

As you probably know, cash flow multiples are another common way to value a business.

For Q3 2009, the average cash flow multiple for listed businesses in the Albany-Schenectady-Troy, NY metro area was 4.49.

So, a business with cash flows of $110,000 might list for $494,208. That's only if the firm complies with the local average. Actual cash flow multiples are based on business specifics.

If you are interested in what cash flows are for a business in Albany, BizBuySell.com found that the median cash flow for Albany area businesses was $130,000 in Q3 2009. In Q3 2008, Albany cash flow multiples averaged 4.29 and the median cash flow was $140,307.

Number of Albany Businesses for Sale in the Dataset

The study data comprised 73 listings in the Albany-Schenectady-Troy, NY metro area. As such, some of the businesses used to derive the median valuation might be outside of Albany, but they are nearby and so are probably representative of Albany business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for Albany spanned 70 listings. In a market where you would think fewer business owners would be selling it's a bit surprising to see more Albany business-for-sale listings.

Can I Sell My Albany, NY Business Now?

As long as you maintain confidentiality while selling a business, there's little harm in putting a business up for sale. Sure, it takes a lot of work, but investing in getting ready to sell now will have a payoff whenever you decide to actually sell. By simply listing a business for sale, and doing it now, you can get a feel for the market. Remember, you can always say no thanks to an offer you don't like. This helpful tip on buying a business comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Albany, NY Businesses

If you are thinking about buying a business or selling a business and would like to determine how much a business is worth, 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 additional information.

 

 

 

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