September 18, 2020  
 
  Articles for Entrepreneurs  
Gaebler.com is a daily online magazine covering small business news. We help entrepreneurs transform ideas and innovations into greatness.

Q3 2009 Business Valuation Data

 

 

Sell My Albuquerque, NM Business

BizBuySell.com has just released its Albuquerque, New Mexico business-for-sale statistics.

Median Ask Prices for Albuquerque, NM 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 Albuquerque, NM metro area for the last 11 quarters.

Quarter

Median Ask

Q1 2007

$215,000

Q2 2007

$262,500

Q3 2007

$259,500

Q4 2007

$297,000

Q1 2008

$298,000

Q2 2008

$295,000

Q3 2008

$298,450

Q4 2008

$323,850

Q1 2009

$350,000

Q2 2009

$338,850

Q3 2009

$440,000

As you can see from the chart above, Albuquerque business-for-sale listings in Q3 2009 had a median asking price of $440,000.

That compares to a median ask price of $298,450 in Q3 2008. Because the median ask price for businesses for sale in Albuquerque has risen year over year, we can conclude that many smaller firms in Albuquerque are holding off on selling.

Revenue Multiples for Albuquerque, NM Businesses

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

Quarter

Revenue Multiple

Q1 2007

0.82

Q2 2007

1.11

Q3 2007

1.01

Q4 2007

0.85

Q1 2008

0.82

Q2 2008

0.71

Q3 2008

0.58

Q4 2008

0.71

Q1 2009

0.72

Q2 2009

0.82

Q3 2009

0.81

In the Albuquerque, NM metro area, small companies will typically sell for 0.81 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 $121,065. Keep in mind that this is only 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 Albuquerque business-for-sale listings was $565,900 in Q3 2009.

To put this in perspective, the Q3 2008 revenue multiple was 0.58 and the median revenue for listed Albuquerque businesses was $559,932.

Cash Flow Multiples for Albuquerque, NM Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

4.05

Q2 2007

3.99

Q3 2007

3.49

Q4 2007

3.39

Q1 2008

3.10

Q2 2008

3.23

Q3 2008

3.45

Q4 2008

3.74

Q1 2009

3.81

Q2 2009

4.10

Q3 2009

3.78

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

For Q3 2009, the average cash flow multiple for businesses listed in the Albuquerque, NM metro area was 3.78.

So, a firm with cash flows of $110,000 might list for $415,267. That's only if the firm complies with the local average. The actual distribution on cash flow multiples for a given set of businesses can be quite wide-ranging.

If you are interested in what cash flows are for a business in Albuquerque, BizBuySell.com reports that the median cash flow for Albuquerque area businesses was $134,000 in Q3 2009. In Q3 2008, Albuquerque cash flow multiples averaged 3.45 and the median cash flow was $85,574.

Number of Albuquerque Businesses for Sale in the Dataset

The study data comprised 51 listings in the Albuquerque, NM metro area. As such, some of the businesses used to derive the median valuation might be outside of Albuquerque, but they are in the area and so are probably representative of Albuquerque business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for Albuquerque spanned 42 listings. In a market where you would think fewer business owners would be selling it's a bit surprising to see more Albuquerque business-for-sale listings.

Should I Sell My Albuquerque, NM 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 Albuquerque, NM Businesses

If you are contemplating 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 additional information.

 

 

 

Additional Resources for Entrepreneurs

Administrative Professionals / Office Managers

Family Business Advice

Good Businesses to Start

Start an Energy Business

Start a Hedge Fund

Payroll Service Information

Productivity Tips

Bad Economy Advice

Small Business Websites

Search Engine Optimization

Online Reputation