September 22, 2020  
 
  Articles for Entrepreneurs  
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Q3 2009 Business Valuation Data

 

 

Sell My Bloomington, MN Business

We just received the latest Bloomington, Minnesota business valuation data for Third Quarter 2009.

Median Ask Prices for Bloomington, MN Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Minneapolis-St. Paul-Bloomington, MN-WI metro area for the last 11 quarters.

Quarter

Median Ask

Q1 2007

$250,000

Q2 2007

$259,000

Q3 2007

$300,000

Q4 2007

$299,000

Q1 2008

$265,000

Q2 2008

$250,000

Q3 2008

$265,000

Q4 2008

$300,000

Q1 2009

$275,000

Q2 2009

$258,999

Q3 2009

$250,000

As shown in the table, Bloomington business-for-sale listings in Q3 2009 had a median asking price of $250,000.

That compares to a median ask price of $265,000 in Q3 2008. Given that Bloomington, MN median business asking prices appear to be dropping, it suggests that selling Bloomington businesses may be lowering their prices to make their businesses more attractive to buyers.

Revenue Multiples for Bloomington, MN Businesses

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

Quarter

Revenue Multiple

Q1 2007

0.76

Q2 2007

0.88

Q3 2007

0.83

Q4 2007

0.87

Q1 2008

0.85

Q2 2008

0.88

Q3 2008

0.91

Q4 2008

0.91

Q1 2009

0.94

Q2 2009

0.86

Q3 2009

0.94

In the Minneapolis-St. Paul-Bloomington, MN-WI metro area, small companies will usually sell for 0.94 times the selling company's revenues. As the table above indicates, this 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 $141,463. Remember, however, that this is just an average for revenue multiples in Bloomington 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 Bloomington business-for-sale listings was $369,846 in Q3 2009.

To give this some context, the Q3 2008 revenue multiple was 0.91 and the median revenue for listed Bloomington businesses was $374,000.

Cash Flow Multiples for Bloomington, MN Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

3.93

Q2 2007

3.76

Q3 2007

3.91

Q4 2007

4.02

Q1 2008

3.99

Q2 2008

4.20

Q3 2008

4.19

Q4 2008

4.37

Q1 2009

4.28

Q2 2009

4.10

Q3 2009

4.23

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 Minneapolis-St. Paul-Bloomington, MN-WI metro area was 4.23.

So, a business with cash flows of $110,000 might list for $464,974. That calculation is dependent on the business selling for the area's average multiple. The actual distribution on cash flow multiples for a given set of businesses can be quite wide-ranging.

If you are interested in what cash flows are for a business in Bloomington, BizBuySell.com found that the median cash flow for Bloomington area businesses was $75,000 in Q3 2009. In Q3 2008, Bloomington cash flow multiples averaged 4.19 and the median cash flow was $78,688.

Number of Bloomington Businesses for Sale in the Dataset

The study data comprised 312 listings in the Minneapolis-St. Paul-Bloomington, MN-WI metro area. As such, some of the businesses used to derive the median valuation might be outside of Bloomington, but they are in the area and so are probably representative of Bloomington business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for Bloomington spanned 307 listings. In a market where you would think fewer business owners would be selling, it's a bit surprising to see more Bloomington business-for-sale listings.

Can I Sell My Bloomington, MN Business Now?

As long as you maintain confidentiality while selling a business, there's little harm in putting a business up for sale. Sure, it takes a lot of work, but investing in getting ready to sell now will have a payoff whenever you decide to actually sell. By simply listing a business for sale, and doing it now, you can get a feel for the market. Remember, you can always say no thanks to an offer you don't like. This helpful tip on buying a business comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Bloomington, MN Businesses

If you are thinking about 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 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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