Q3 2009 Business Valuation Data

Sell My Beaverton, OR Business

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

Median Ask Prices for Beaverton, OR Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Portland-Vancouver-Beaverton, OR-WA metro area for the last 11 quarters.

Quarter
Median Ask
Q1 2007
$189,500
Q2 2007
$202,500
Q3 2007
$299,000
Q4 2007
$315,000
Q1 2008
$290,000
Q2 2008
$275,000
Q3 2008
$275,000
Q4 2008
$289,500
Q1 2009
$295,000
Q2 2009
$295,000
Q3 2009
$292,250

As shown in the table, Beaverton business-for-sale listings in Q3 2009 had a median asking price of $292,250.

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

Revenue Multiples for Beaverton, OR Businesses

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

Quarter
Revenue Multiple
Q1 2007
0.68
Q2 2007
0.76
Q3 2007
0.88
Q4 2007
0.83
Q1 2008
0.82
Q2 2008
0.92
Q3 2008
0.96
Q4 2008
0.83
Q1 2009
0.86
Q2 2009
0.85
Q3 2009
0.88

In the Portland-Vancouver-Beaverton, OR-WA metro area, small companies will typically sell for 0.88 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 $132,212. Remember, however, that this is strictly an average for revenue multiples in the area. Some entities will have higher revenue multiples and others will have lower revenue multiples.

According to BizBuySell.com, the median revenues for its Beaverton business-for-sale listings was $436,712 in Q3 2009.

To put this in perspective, the Q3 2008 revenue multiple was 0.96 and the median revenue for listed Beaverton businesses was $389,575.

Cash Flow Multiples for Beaverton, OR Businesses

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

Quarter
Median Cash
Flow Multiple
Q1 2007
3.30
Q2 2007
3.42
Q3 2007
3.74
Q4 2007
3.91
Q1 2008
3.65
Q2 2008
3.99
Q3 2008
3.84
Q4 2008
3.47
Q1 2009
3.41
Q2 2009
3.41
Q3 2009
3.68

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 Portland-Vancouver-Beaverton, OR-WA metro area was 3.68.

So, a business with cash flows of $110,000 might list for $405,086. That's only if the firm complies with the local average. Most businesses will not conform to industry- or area averages.

In case you were wondering what typical cash flows are for a business in Beaverton, BizBuySell.com found that the median cash flow for Beaverton area businesses was $100,000 in Q3 2009. In Q3 2008, Beaverton cash flow multiples averaged 3.84 and the median cash flow was $95,114.

Number of Beaverton Businesses for Sale in the Dataset

The study data comprised 130 listings in the Portland-Vancouver-Beaverton, OR-WA metro area. As such, some of the businesses used to derive the median valuation might be outside of Beaverton, but they are in the area and so are likely representative of Beaverton business valuations.

In Q3 2008, just one year ago, there were 196 Beaverton listings in the BizBuySell.com dataset. As a result of the recession, fewer Beaverton business owners are selling because they hope to weather the storm and sell after the economy turns around.

Can I Sell My Beaverton, OR 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 Sun Acquisitions, a leading business brokerage firm.

Business Valuations for Beaverton, OR Businesses

If you are contemplating buying a business or selling a business and would like to get an estimated company valuation, 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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