September 26, 2020  
 
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Q3 2009 Business Valuation Data

 

 

Sell My Cary, NC Business

BizBuySell.com has just released its Cary, North Carolina business valuation data for Third Quarter 2009.

Median Ask Prices for Cary, NC Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for companies in the Raleigh-Cary, NC metro area for the last 11 quarters.

Quarter

Median Ask

Q1 2007

$195,000

Q2 2007

$197,500

Q3 2007

$225,000

Q4 2007

$240,000

Q1 2008

$250,000

Q2 2008

$241,500

Q3 2008

$245,000

Q4 2008

$248,500

Q1 2009

$242,500

Q2 2009

$249,000

Q3 2009

$222,000

As you can see from the chart above, Cary business-for-sale listings in Q3 2009 had a median asking price of $222,000.

That compares to a median ask price of $245,000 in Q3 2008. Given that Cary, NC median business asking prices appear to be dropping, it suggests that selling Cary businesses may be lowering their prices to make their businesses more attractive to buyers.

Revenue Multiples for Cary, NC Businesses

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

Quarter

Revenue Multiple

Q1 2007

0.66

Q2 2007

0.80

Q3 2007

0.76

Q4 2007

0.79

Q1 2008

0.77

Q2 2008

0.74

Q3 2008

0.73

Q4 2008

0.76

Q1 2009

0.80

Q2 2009

0.77

Q3 2009

0.78

In the Raleigh-Cary, NC metro area, companies will usually sell for 0.78 times the selling company's revenues. As shown in the chart above, that was the mean revenue multiple for Q3 2009 in this part of the country.

In other words, a business that has revenues of $150,000 might list for $117,482. Remember, however, that this is just an average for revenue multiples in Cary 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 Cary business-for-sale listings was $399,582 in Q3 2009.

To put this in perspective, the Q3 2008 revenue multiple was 0.73 and the median revenue for listed Cary businesses was $444,833.

Cash Flow Multiples for Cary, NC Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

3.21

Q2 2007

3.27

Q3 2007

3.02

Q4 2007

3.20

Q1 2008

3.37

Q2 2008

3.28

Q3 2008

3.14

Q4 2008

3.16

Q1 2009

3.33

Q2 2009

3.44

Q3 2009

3.32

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 Raleigh-Cary, NC metro area was 3.32.

So, a company with cash flows of $110,000 might list for $365,677. 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 Cary, BizBuySell.com reports that the median cash flow for Cary area businesses was $86,284 in Q3 2009. In Q3 2008, Cary cash flow multiples averaged 3.14 and the median cash flow was $90,000.

Number of Cary Businesses for Sale in the Dataset

The study data comprised 160 listings in the Raleigh-Cary, NC metro area. As such, some of the businesses used to derive the median valuation might be outside of Cary, but they are in the area and so are probably representative of Cary business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for Cary spanned 139 listings. In a market where you would think fewer business owners would be selling, it's a bit surprising to see more Cary business-for-sale listings.

Can I Sell My Cary, NC Business Now?

You should consider selling your business if you think a buyer will be willing to pay a price that you are happy with. The economy should not be the major determining factor. In fact, some countercyclical companies sell for more in a down economy than they do in an up economy. This tip for selling a business was provided by Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Cary, NC 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 suggest you try 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 additional information.

 

 

 

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