September 18, 2020  
 
  Articles for Entrepreneurs  
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Q3 2009 Business Valuation Data

 

 

Sell My Arlington, TX Business

We just received the latest Arlington, Texas statistics on business valuations for Third Quarter 2009.

Median Ask Prices for Arlington, TX Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Dallas-Fort Worth-Arlington, TX metro area for the last 11 quarters.

Quarter

Median Ask

Q1 2007

$330,000

Q2 2007

$300,000

Q3 2007

$330,000

Q4 2007

$330,000

Q1 2008

$300,000

Q2 2008

$291,000

Q3 2008

$275,000

Q4 2008

$290,000

Q1 2009

$285,000

Q2 2009

$290,000

Q3 2009

$299,500

As you can see from the chart above, Arlington business-for-sale listings in Q3 2009 had a median asking price of $299,500.

That compares to a median ask price of $275,000 in Q3 2008. Because the median ask price for businesses for sale in Arlington has risen year over year, we can conclude that many smaller firms in Arlington are holding off on selling.

Revenue Multiples for Arlington, TX Businesses

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

Quarter

Revenue Multiple

Q1 2007

1.04

Q2 2007

1.04

Q3 2007

1.03

Q4 2007

1.00

Q1 2008

1.04

Q2 2008

1.00

Q3 2008

0.95

Q4 2008

0.96

Q1 2009

1.01

Q2 2009

1.04

Q3 2009

1.06

In the Dallas-Fort Worth-Arlington, TX metro area, businesses will typically sell for 1.06 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 $159,193. Keep in mind that this is strictly an average for revenue multiples in the area. Some businesses will have higher revenue multiples and others will have lower revenue multiples.

According to BizBuySell.com, the median revenues for its Arlington business-for-sale listings was $431,000 in Q3 2009.

As a reference point, the Q3 2008 revenue multiple was 0.95 and the median revenue for listed Arlington businesses was $439,000.

Cash Flow Multiples for Arlington, TX Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

3.71

Q2 2007

3.69

Q3 2007

3.73

Q4 2007

3.69

Q1 2008

3.81

Q2 2008

3.69

Q3 2008

3.54

Q4 2008

3.53

Q1 2009

3.69

Q2 2009

3.69

Q3 2009

3.74

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 Dallas-Fort Worth-Arlington, TX metro area was 3.74.

So, a company with cash flows of $110,000 might list for $411,277. That calculation is dependent on the business selling for the area's average multiple. Most businesses will not conform to industry- or area averages.

In case you were wondering what typical cash flows are for a business in Arlington, BizBuySell.com reports that the median cash flow for Arlington area businesses was $120,000 in Q3 2009. In Q3 2008, Arlington cash flow multiples averaged 3.54 and the median cash flow was $105,000.

Number of Arlington Businesses for Sale in the Dataset

The study data comprised 928 listings in the Dallas-Fort Worth-Arlington, TX metro area. As such, some of the businesses used to derive the median valuation might be outside of Arlington, but they are close by and so are probably representative of Arlington business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for Arlington spanned 1085 listings. In a market where you would think fewer business owners would be selling, it's a bit surprising to see more Arlington business-for-sale listings.

Can I Sell My Arlington, TX Business Now?

With the right plan and the right advisors, now might be a great time to exit the business. Credit is easing up and the SBA recently liftened some burdensome caps on goodwill financing. Start now, take the time to do it right, and you'll be able to find a buyer with a price that's right for you. This advice on how to sell a company comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Arlington, TX 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 published quarterly. If you find these trends interesting, take a moment to visit BizBuySell.com Insights Report for more information.

 

 

 

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