September 18, 2020  
 
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Q3 2009 Business Valuation Data

 

 

Sell My Carmel, IN Business

Every quarter, BizBuySell.com publishes business valuation data, and we now have their latest Carmel, Indiana statistics on business valuations for Third Quarter 2009.

Median Ask Prices for Carmel, IN Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Indianapolis-Carmel, IN metro area for the last 11 quarters.

Quarter

Median Ask

Q1 2007

$155,000

Q2 2007

$180,000

Q3 2007

$257,500

Q4 2007

$277,000

Q1 2008

$257,000

Q2 2008

$250,000

Q3 2008

$250,000

Q4 2008

$242,500

Q1 2009

$250,000

Q2 2009

$250,000

Q3 2009

$210,000

As shown in the table, Carmel business-for-sale listings in Q3 2009 had a median asking price of $210,000.

That compares to a median ask price of $250,000 in Q3 2008. Given that Carmel, IN median business asking prices appear to be dropping, it suggests that selling Carmel businesses may be lowering their prices to make their businesses more attractive to buyers.

Revenue Multiples for Carmel, IN Businesses

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

Quarter

Revenue Multiple

Q1 2007

0.70

Q2 2007

0.73

Q3 2007

0.90

Q4 2007

1.01

Q1 2008

1.03

Q2 2008

0.85

Q3 2008

0.86

Q4 2008

0.76

Q1 2009

0.76

Q2 2009

0.76

Q3 2009

0.71

In the Indianapolis-Carmel, IN metro area, small companies will typically sell for 0.71 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 $106,785. Remember, however, that this is strictly an average for revenue multiples in Carmel 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 Carmel business-for-sale listings was $381,031 in Q3 2009.

As a reference point, the Q3 2008 revenue multiple was 0.86 and the median revenue for listed Carmel businesses was $365,192.

Cash Flow Multiples for Carmel, IN Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

3.66

Q2 2007

3.41

Q3 2007

4.09

Q4 2007

4.41

Q1 2008

3.74

Q2 2008

3.47

Q3 2008

3.38

Q4 2008

3.02

Q1 2009

3.46

Q2 2009

3.10

Q3 2009

3.21

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 Indianapolis-Carmel, IN metro area was 3.21.

So, a business with cash flows of $110,000 might list for $353,373. That's only if the firm complies with the local average. Most businesses will not conform to industry- or area averages.

If you are interested in what cash flows are for a business in Carmel, BizBuySell.com reports that the median cash flow for Carmel area businesses was $82,452 in Q3 2009. In Q3 2008, Carmel cash flow multiples averaged 3.38 and the median cash flow was $85,500.

Number of Carmel Businesses for Sale in the Dataset

The study data comprised 96 listings in the Indianapolis-Carmel, IN metro area. As such, some of the businesses used to derive the median valuation might be outside of Carmel, but they are in the area and so are probably representative of Carmel business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for Carmel spanned 104 listings. In a market where you would think fewer business owners would be selling, it's a bit surprising to see more Carmel business-for-sale listings.

Should I Sell My Carmel, IN 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 Carmel, IN 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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