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

 

 

Sell My Atlanta, GA Business

Every quarter, BizBuySell.com publishes business valuation data, and we now have their latest Atlanta, Georgia business-for-sale statistics.

Median Ask Prices for Atlanta, GA Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Atlanta-Sandy Springs-Marietta, GA metro area for the last 11 quarters.

Quarter

Median Ask

Q1 2007

$230,000

Q2 2007

$240,000

Q3 2007

$245,000

Q4 2007

$249,000

Q1 2008

$250,000

Q2 2008

$250,000

Q3 2008

$235,000

Q4 2008

$239,500

Q1 2009

$249,000

Q2 2009

$240,000

Q3 2009

$210,000

As you can see from the chart above, Atlanta business-for-sale listings in Q3 2009 had a median asking price of $210,000.

That compares to a median ask price of $235,000 in Q3 2008. Given that Atlanta, GA median business asking prices appear to be dropping, it suggests that selling Atlanta businesses may be lowering their prices to make their businesses more attractive to buyers.

Revenue Multiples for Atlanta, GA Businesses

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

Quarter

Revenue Multiple

Q1 2007

1.07

Q2 2007

0.98

Q3 2007

1.03

Q4 2007

1.00

Q1 2008

1.02

Q2 2008

1.02

Q3 2008

0.99

Q4 2008

1.01

Q1 2009

0.98

Q2 2009

0.97

Q3 2009

0.99

In the Atlanta-Sandy Springs-Marietta, GA metro area, businesses will usually sell for 0.99 times the selling company's revenues. As shown in the chart above, that was the mean revenue multiple for Q3 2009 in this metro area.

In other words, a business that has revenues of $150,000 might list for $148,644. Remember, however, that this is simply 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 Atlanta business-for-sale listings was $383,033 in Q3 2009.

In terms of trending year over year, the Q3 2008 revenue multiple was 0.99 and the median revenue for listed Atlanta businesses was $351,106.

Cash Flow Multiples for Atlanta, GA Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

3.64

Q2 2007

3.47

Q3 2007

3.68

Q4 2007

3.57

Q1 2008

3.56

Q2 2008

3.62

Q3 2008

3.53

Q4 2008

3.51

Q1 2009

3.52

Q2 2009

3.65

Q3 2009

3.63

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 Atlanta-Sandy Springs-Marietta, GA metro area was 3.63.

So, a business with cash flows of $110,000 might list for $398,839. 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 Atlanta, BizBuySell.com reports that the median cash flow for Atlanta area businesses was $90,000 in Q3 2009. In Q3 2008, Atlanta cash flow multiples averaged 3.53 and the median cash flow was $94,000.

Number of Atlanta Businesses for Sale in the Dataset

The study data comprised 767 listings in the Atlanta-Sandy Springs-Marietta, GA metro area. Many of the businesses in the dataset are outside of Atlanta, but they are in the area and so are likely representative of Atlanta business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for Atlanta spanned 997 listings. The downward trend in the number of Atlanta business-for-sale listings is indicative of the current down economy.

Can I Sell My Atlanta, GA Business Now?

It can take a long time to get a business ready to sell. The sooner you start the process, the sooner you'll be in good shape to entertain offers from would-be business buyers. This helpful advice on how to buy a business comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Atlanta, GA Businesses

If you are contemplating buying a business or selling a business and would like to determine how much a business is worth, we suggest you try 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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