September 18, 2020  
 
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Q3 2009 Business Valuation Data

 

 

Sell My Camden, NJ Business

BizBuySell.com has just released its Camden, New Jersey business-for-sale statistics.

Median Ask Prices for Camden, NJ Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for companies in the Philadelphia-Camden-Wilmington, PA-NJ-DE-MD metro area for the last 11 quarters.

Quarter

Median Ask

Q1 2007

$225,000

Q2 2007

$225,000

Q3 2007

$246,950

Q4 2007

$250,000

Q1 2008

$250,000

Q2 2008

$260,000

Q3 2008

$260,000

Q4 2008

$275,000

Q1 2009

$290,000

Q2 2009

$289,000

Q3 2009

$275,000

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

That compares to a median ask price of $260,000 in Q3 2008. Since the median ask price for businesses for sale in Camden has gone up year over year, we can conclude that many smaller businesses in Camden are putting off selling.

Revenue Multiples for Camden, NJ Businesses

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

Quarter

Revenue Multiple

Q1 2007

0.81

Q2 2007

0.79

Q3 2007

0.85

Q4 2007

0.83

Q1 2008

0.87

Q2 2008

0.91

Q3 2008

0.89

Q4 2008

0.90

Q1 2009

0.87

Q2 2009

0.89

Q3 2009

0.93

In the Philadelphia-Camden-Wilmington, PA-NJ-DE-MD metro area, businesses will typically sell for 0.93 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 $140,196. 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 Camden business-for-sale listings was $425,000 in Q3 2009.

To give this some context, the Q3 2008 revenue multiple was 0.89 and the median revenue for listed Camden businesses was $400,000.

Cash Flow Multiples for Camden, NJ Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

3.14

Q2 2007

3.03

Q3 2007

3.14

Q4 2007

3.16

Q1 2008

3.22

Q2 2008

3.41

Q3 2008

3.31

Q4 2008

3.31

Q1 2009

3.32

Q2 2009

3.35

Q3 2009

3.47

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 Philadelphia-Camden-Wilmington, PA-NJ-DE-MD metro area was 3.47.

So, a business with cash flows of $110,000 might list for $382,149. That's only if the firm complies with the local average. Actual cash flow multiples are based on business specifics.

In case you were wondering what typical cash flows are for a business in Camden, BizBuySell.com reports that the median cash flow for Camden area businesses was $109,500 in Q3 2009. In Q3 2008, Camden cash flow multiples averaged 3.31 and the median cash flow was $101,000.

Number of Camden Businesses for Sale in the Dataset

The study data comprised 821 listings in the Philadelphia-Camden-Wilmington, PA-NJ-DE-MD metro area. As such, some of the businesses used to derive the median valuation might be outside of Camden, but they are in the area and so are probably representative of Camden business valuations.

In Q3 2008, just one year ago, there were 931 Camden listings in the BizBuySell.com dataset. As a result of the recession, fewer Camden business owners are selling because they hope to weather the storm and sell after the economy turns around.

Should I Sell My Camden, NJ Business Now?

While the economy can play a role in deciding whether to sell a business or not, it is only one of many factors. Indications suggest that the economy is turning around, so it's probaby a good time to consider selling right now. Beyond that, though, you have to look at your specific case. Will there be substantial demand for your business? Will you be able to get a good price when selling your company? If not, think about what factors you can control that can make your business more attractive to prospective buyers, and then work diligently to improve your business attractiveness and raise your business valuation. This helpful advice was provided by Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Camden, NJ Businesses

If you are contemplating 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 additional information.

 

 

 

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