September 19, 2020  
 
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Q3 2009 Business Valuation Data

 

 

Sell My Buffalo, NY Business

We just received the latest Buffalo, New York business-for-sale statistics.

Median Ask Prices for Buffalo, NY Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Buffalo-Niagara Falls, NY metro area for the last 11 quarters.

Quarter

Median Ask

Q1 2007

$195,000

Q2 2007

$199,000

Q3 2007

$215,000

Q4 2007

$250,000

Q1 2008

$235,000

Q2 2008

$250,000

Q3 2008

$197,500

Q4 2008

$355,000

Q1 2009

$355,000

Q2 2009

$355,000

Q3 2009

$350,000

As shown in the table, Buffalo business-for-sale listings in Q3 2009 had a median asking price of $350,000.

That compares to a median ask price of $197,500 in Q3 2008. Because the median ask price for businesses for sale in Buffalo has risen year over year, we can conclude that many smaller firms in Buffalo are holding off on selling.

Revenue Multiples for Buffalo, NY Businesses

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

Quarter

Revenue Multiple

Q1 2007

0.85

Q2 2007

0.87

Q3 2007

0.98

Q4 2007

0.82

Q1 2008

0.73

Q2 2008

1.02

Q3 2008

1.24

Q4 2008

1.11

Q1 2009

1.01

Q2 2009

0.93

Q3 2009

0.89

In the Buffalo-Niagara Falls, NY metro area, businesses will usually sell for 0.89 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 firm with revenues of $150,000 might list for $133,679. Remember, however, that this is only an average for revenue multiples in the area. Some firms will have higher revenue multiples and others will have lower revenue multiples.

According to BizBuySell.com, the median revenues for its Buffalo business-for-sale listings was $436,000 in Q3 2009.

As a reference point, the Q3 2008 revenue multiple was 1.24 and the median revenue for listed Buffalo businesses was $217,500.

Cash Flow Multiples for Buffalo, NY Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

2.43

Q2 2007

2.90

Q3 2007

3.47

Q4 2007

3.86

Q1 2008

3.77

Q2 2008

3.84

Q3 2008

3.31

Q4 2008

3.59

Q1 2009

3.52

Q2 2009

2.80

Q3 2009

3.19

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 Buffalo-Niagara Falls, NY metro area was 3.19.

So, a business with cash flows of $110,000 might list for $350,516. That's only if the firm complies with the local average. In practice, cash flow multiples can vary considerably from one business type to another.

If you are interested in what cash flows are for a business in Buffalo, BizBuySell.com reports that the median cash flow for Buffalo area businesses was $100,000 in Q3 2009. In Q3 2008, Buffalo cash flow multiples averaged 3.31 and the median cash flow was $84,646.

Number of Buffalo Businesses for Sale in the Dataset

The study data comprised 15 listings in the Buffalo-Niagara Falls, NY metro area. Many of the businesses in the dataset are outside of Buffalo, but they are in the area and so are probably representative of Buffalo business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for Buffalo spanned 30 listings. The downward trend in the number of Buffalo business-for-sale listings is indicative of the current down economy.

Can I Sell My Buffalo, NY Business Now?

If you want to sell a business now, odds are you can sell now. You may even be able to get a premium acquisition price from a buyer. It all depends on how well you execute. Plenty of deals are getting done, all the time regardless of macro factors. This good selling-a-business tip comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Buffalo, NY Businesses

If you are considering 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 published quarterly. If you find these trends interesting, take a moment to visit BizBuySell.com Insights Report for more information.

 

 

 

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