September 29, 2020  
 
  Articles for Entrepreneurs  
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Q3 2009 Business Valuation Data

 

 

Sell My Baltimore, MD Business

We just received the latest Baltimore, Maryland business valuation data for Third Quarter 2009.

Median Ask Prices for Baltimore, MD Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Baltimore-Towson, MD metro area for the last 11 quarters.

Quarter

Median Ask

Q1 2007

$225,000

Q2 2007

$250,000

Q3 2007

$250,000

Q4 2007

$275,000

Q1 2008

$275,000

Q2 2008

$265,000

Q3 2008

$225,000

Q4 2008

$225,000

Q1 2009

$250,000

Q2 2009

$249,000

Q3 2009

$240,000

As shown in the table, Baltimore business-for-sale listings in Q3 2009 had a median asking price of $240,000.

That compares to a median ask price of $225,000 in Q3 2008. Because the median ask price for businesses for sale in Baltimore has risen year over year, we can conclude that many smaller firms in Baltimore are holding off on selling.

Revenue Multiples for Baltimore, MD Businesses

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

Quarter

Revenue Multiple

Q1 2007

0.81

Q2 2007

0.83

Q3 2007

0.80

Q4 2007

0.81

Q1 2008

0.84

Q2 2008

0.81

Q3 2008

0.75

Q4 2008

0.75

Q1 2009

0.72

Q2 2009

0.72

Q3 2009

0.70

In the Baltimore-Towson, MD metro area, companies will typically sell for 0.70 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 $104,930. Keep in mind that this is just an average for revenue multiples in the area. Some companies will have higher revenue multiples and others will have lower revenue multiples.

According to BizBuySell.com, the median revenues for its Baltimore business-for-sale listings was $459,000 in Q3 2009.

To put this in perspective, the Q3 2008 revenue multiple was 0.75 and the median revenue for listed Baltimore businesses was $409,000.

Cash Flow Multiples for Baltimore, MD Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

3.15

Q2 2007

3.37

Q3 2007

3.36

Q4 2007

3.35

Q1 2008

3.36

Q2 2008

3.31

Q3 2008

3.10

Q4 2008

3.08

Q1 2009

3.11

Q2 2009

3.06

Q3 2009

3.05

As you probably know, cash flow multiples are another useful method to value a business.

For Q3 2009, the average cash flow multiple for listed businesses in the Baltimore-Towson, MD metro area was 3.05.

So, a business with cash flows of $110,000 might list for $335,060. That's only if the firm complies with the local average. Cash flow multiples will usually vary considerably based on many factors.

If you are interested in what cash flows are for a business in Baltimore, BizBuySell.com reports that the median cash flow for Baltimore area businesses was $100,000 in Q3 2009. In Q3 2008, Baltimore cash flow multiples averaged 3.10 and the median cash flow was $95,000.

Number of Baltimore Businesses for Sale in the Dataset

The study data comprised 252 listings in the Baltimore-Towson, MD metro area. Many of the businesses in the dataset are outside of Baltimore, but they are in the area and so are probably representative of Baltimore business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for Baltimore spanned 318 listings. The downward trend in the number of Baltimore business-for-sale listings is indicative of the current down economy.

Should I Sell My Baltimore, MD Business Now?

Selling a business is something you should start preparing to do long before you actually want to sell a business. A common mistake is to wait too long to learn about what it takes to sell a business for a premium price. Even if you don't plan on pursuing an exit for several years, you should start the process now. This useful tip for selling a business comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Baltimore, MD Businesses

If you are considering 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 more information.

 

 

 

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