Q3 2009 Business Valuation Data
Sell My Carlsbad, CA Business
We just received the latest Carlsbad, California business valuation data for Third Quarter 2009.
Median Ask Prices for Carlsbad, CA Businesses
If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the San Diego-Carlsbad-San Marcos, CA metro area for the last 11 quarters.
As you can see from the chart above, Carlsbad business-for-sale listings in Q3 2009 had a median asking price of $194,500.
That compares to a median ask price of $220,000 in Q3 2008. The lower median asking price in last quarter suggests that Carlsbad, CA sellers are dropping their asking prices in light of market conditions. This is making it possible for more business-for-sale transactions to close.
Revenue Multiples for Carlsbad, CA Businesses
Here is how median revenue multiples are changing in the Carlsbad area, based on BizBuySell.com's data.
In the San Diego-Carlsbad-San Marcos, CA metro area, businesses will typically sell for 0.63 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 $94,413. Remember, however, that this is just an average for revenue multiples in the area. Some businesses will have higher revenue multiples and others will have lower revenue multiples.
According to BizBuySell.com, the median revenues for its Carlsbad business-for-sale listings was $364,000 in Q3 2009.
To put this in perspective, the Q3 2008 revenue multiple was 0.73 and the median revenue for listed Carlsbad businesses was $360,000.
Cash Flow Multiples for Carlsbad, CA Businesses
The table below shows how cash flow multiples are trending in the Carlsbad area, based on BizBuySell.com's quarterly reports.
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 San Diego-Carlsbad-San Marcos, CA metro area was 2.83.
So, a firm with cash flows of $110,000 might list for $311,532. That's only if the firm complies with the local average. Cash flow multiples will usually vary considerably based on many factors.
If you are interested in what cash flows are for a business in Carlsbad, BizBuySell.com reports that the median cash flow for Carlsbad area businesses was $84,500 in Q3 2009. In Q3 2008, Carlsbad cash flow multiples averaged 2.94 and the median cash flow was $90,000.
Number of Carlsbad Businesses for Sale in the Dataset
The study data comprised 372 listings in the San Diego-Carlsbad-San Marcos, CA metro area. As such, some of the businesses used to derive the median valuation might be outside of Carlsbad, but they are close by and so are probably representative of Carlsbad business valuations.
In Q3 2008, just one year ago, there were 392 Carlsbad listings in the BizBuySell.com dataset. As a result of the recession, fewer Carlsbad business owners are selling because they hope to weather the storm and sell after the economy turns around.
Can I Sell My Carlsbad, CA Business Now?
You can absolutely sell in this market. Deals are getting done every day. You just have to structure the deal properly. In this down economy, performance based pricing is very popular. When buyers and sellers differ on valuations, tools such as earnouts, equity ownership or profit sharing can bridge the valuation gap. In effect, this is a deferred purchase price, but it's a way to get a deal done in a tough economic climate. This helpful tip comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.
Business Valuations for Carlsbad, CA 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 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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