September 24, 2020  
 
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Q3 2009 Business Valuation Data

 

 

Sell My Baytown, TX Business

Every quarter, BizBuySell.com publishes business valuation data, and we now have their latest Baytown, Texas business valuation data for Third Quarter 2009.

Median Ask Prices for Baytown, TX Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Houston-Sugar Land-Baytown, TX metro area for the last 11 quarters.

Quarter

Median Ask

Q1 2007

$250,000

Q2 2007

$245,000

Q3 2007

$225,000

Q4 2007

$225,000

Q1 2008

$221,500

Q2 2008

$250,000

Q3 2008

$250,000

Q4 2008

$285,000

Q1 2009

$295,000

Q2 2009

$295,000

Q3 2009

$275,000

As you can see from the chart above, Baytown business-for-sale listings in Q3 2009 had a median asking price of $275,000.

That compares to a median ask price of $250,000 in Q3 2008. Since the median ask price for businesses for sale in Baytown has gone up year over year, we can conclude that many smaller businesses in Baytown are putting off selling.

Revenue Multiples for Baytown, TX Businesses

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

Quarter

Revenue Multiple

Q1 2007

1.25

Q2 2007

1.22

Q3 2007

1.15

Q4 2007

1.10

Q1 2008

1.07

Q2 2008

1.08

Q3 2008

1.04

Q4 2008

1.07

Q1 2009

1.07

Q2 2009

1.06

Q3 2009

0.96

In the Houston-Sugar Land-Baytown, TX metro area, small businesses will typically sell for 0.96 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 business that has revenues of $150,000 might list for $144,645. Remember, however, that this is just an average for revenue multiples in Baytown and surrounding communities. Some firms will have higher revenue multiples and others will have lower revenue multiples.

According to BizBuySell.com, the median revenues for its Baytown business-for-sale listings was $420,000 in Q3 2009.

To put this in perspective, the Q3 2008 revenue multiple was 1.04 and the median revenue for listed Baytown businesses was $360,000.

Cash Flow Multiples for Baytown, TX Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

3.88

Q2 2007

3.52

Q3 2007

3.59

Q4 2007

3.59

Q1 2008

3.56

Q2 2008

3.66

Q3 2008

3.61

Q4 2008

3.70

Q1 2009

3.65

Q2 2009

3.65

Q3 2009

3.49

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 Houston-Sugar Land-Baytown, TX metro area was 3.49.

So, a firm with cash flows of $110,000 might list for $384,406. 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 Baytown, BizBuySell.com found that the median cash flow for Baytown area businesses was $105,000 in Q3 2009. In Q3 2008, Baytown cash flow multiples averaged 3.61 and the median cash flow was $96,640.

Number of Baytown Businesses for Sale in the Dataset

The study data comprised 483 listings in the Houston-Sugar Land-Baytown, TX metro area. As such, some of the businesses used to derive the median valuation might be outside of Baytown, but they are in the area and so are likely representative of Baytown business valuations.

In Q3 2008, just one year ago, there were 577 Baytown listings in the BizBuySell.com dataset. As a result of the recession, fewer Baytown business owners are selling because they hope to weather the storm and sell after the economy turns around.

Should I Sell My Baytown, 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 Baytown, 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 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 published quarterly. If you find these trends interesting, take a moment to visit BizBuySell.com Insights Report for more information.

 

 

 

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