September 20, 2020  
 
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Q3 2009 Business Valuation Data

 

 

Sell My Arden-Arcade, CA Business

We just received the latest Arden-Arcade, California statistics on business valuations for Third Quarter 2009.

Median Ask Prices for Arden-Arcade, CA Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Sacramento--Arden-Arcade--Roseville, CA metro area for the last 11 quarters.

Quarter

Median Ask

Q1 2007

$299,900

Q2 2007

$249,000

Q3 2007

$240,000

Q4 2007

$225,000

Q1 2008

$217,500

Q2 2008

$199,000

Q3 2008

$199,000

Q4 2008

$229,450

Q1 2009

$228,000

Q2 2009

$225,000

Q3 2009

$250,000

As shown in the table, Arden-Arcade business-for-sale listings in Q3 2009 had a median asking price of $250,000.

That compares to a median ask price of $199,000 in Q3 2008. Because the median ask price for businesses for sale in Arden-Arcade has risen year over year, we can conclude that many smaller firms in Arden-Arcade are holding off on selling.

Revenue Multiples for Arden-Arcade, CA Businesses

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

Quarter

Revenue Multiple

Q1 2007

0.67

Q2 2007

0.73

Q3 2007

0.76

Q4 2007

0.74

Q1 2008

0.81

Q2 2008

0.77

Q3 2008

0.76

Q4 2008

0.72

Q1 2009

0.73

Q2 2009

0.75

Q3 2009

0.77

In the Sacramento--Arden-Arcade--Roseville, CA metro area, small companies will typically sell for 0.77 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 $115,983. Remember, however, that this is just 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 Arden-Arcade business-for-sale listings was $409,500 in Q3 2009.

To put this in perspective, the Q3 2008 revenue multiple was 0.76 and the median revenue for listed Arden-Arcade businesses was $423,167.

Cash Flow Multiples for Arden-Arcade, CA Businesses

Here is how cash flow multiples are trending in the Arden-Arcade area, based on BizBuySell.com's quarterly reports.

Quarter

Median Cash
Flow Multiple

Q1 2007

2.72

Q2 2007

3.19

Q3 2007

3.47

Q4 2007

3.65

Q1 2008

3.62

Q2 2008

3.33

Q3 2008

3.18

Q4 2008

3.24

Q1 2009

3.24

Q2 2009

3.38

Q3 2009

3.43

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 Sacramento--Arden-Arcade--Roseville, CA metro area was 3.43.

So, a company with cash flows of $110,000 might list for $376,988. That's only if the firm complies with the local average. Most businesses will not conform to industry- or area averages.

If you are interested in what cash flows are for a business in Arden-Arcade, BizBuySell.com determined that the median cash flow for Arden-Arcade area businesses was $93,131 in Q3 2009. In Q3 2008, Arden-Arcade cash flow multiples averaged 3.18 and the median cash flow was $90,000.

Number of Arden-Arcade Businesses for Sale in the Dataset

The study data comprised 154 listings in the Sacramento--Arden-Arcade--Roseville, CA metro area. As such, some of the businesses used to derive the median valuation might be outside of Arden-Arcade, but they are nearby and so are probably representative of Arden-Arcade business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for Arden-Arcade spanned 233 listings. The downward trend in the number of Arden-Arcade business-for-sale listings is indicative of the current down economy.

Can I Sell My Arden-Arcade, CA Business Now?

While the economy can play a role in deciding whether to sell a business or not, it is only one of many factors. Indications suggest that the economy is turning around, so it's probaby a good time to consider selling right now. Beyond that, though, you have to look at your specific case. Will there be substantial demand for your business? Will you be able to get a good price when selling your company? If not, think about what factors you can control that can make your business more attractive to prospective buyers, and then work diligently to improve your business attractiveness and raise your business valuation. This helpful advice was provided by Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Arden-Arcade, CA 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 more information.

 

 

 

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