September 30, 2020  
 
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Q3 2009 Business Valuation Data

 

 

Sell My Charlotte, NC Business

Every quarter, BizBuySell.com publishes business valuation data, and we now have their latest Charlotte, North Carolina business valuation data for Third Quarter 2009.

Median Ask Prices for Charlotte, NC Businesses

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

Quarter

Median Ask

Q1 2007

$312,500

Q2 2007

$273,000

Q3 2007

$300,000

Q4 2007

$350,000

Q1 2008

$325,000

Q2 2008

$300,000

Q3 2008

$325,000

Q4 2008

$300,000

Q1 2009

$275,000

Q2 2009

$250,000

Q3 2009

$249,950

As you can see from the chart above, Charlotte business-for-sale listings in Q3 2009 had a median asking price of $249,950.

That compares to a median ask price of $325,000 in Q3 2008. Given that Charlotte, NC median business asking prices appear to be dropping, it suggests that selling Charlotte businesses may be lowering their prices to make their businesses more attractive to buyers.

Revenue Multiples for Charlotte, NC Businesses

Here is how median revenue multiples are moving in the Charlotte area, based on BizBuySell.com's quarterly reports.

Quarter

Revenue Multiple

Q1 2007

0.77

Q2 2007

0.82

Q3 2007

0.82

Q4 2007

0.77

Q1 2008

0.79

Q2 2008

0.80

Q3 2008

0.85

Q4 2008

0.80

Q1 2009

0.78

Q2 2009

0.79

Q3 2009

0.76

In the Charlotte-Gastonia-Concord, NC-SC metro area, businesses will usually sell for 0.76 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 $114,139. Remember, however, that this is simply 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 Charlotte business-for-sale listings was $400,000 in Q3 2009.

To put this in perspective, the Q3 2008 revenue multiple was 0.85 and the median revenue for listed Charlotte businesses was $570,000.

Cash Flow Multiples for Charlotte, NC Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

3.41

Q2 2007

3.38

Q3 2007

3.47

Q4 2007

3.45

Q1 2008

3.41

Q2 2008

3.26

Q3 2008

3.52

Q4 2008

3.32

Q1 2009

3.53

Q2 2009

3.78

Q3 2009

3.69

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 Charlotte-Gastonia-Concord, NC-SC metro area was 3.69.

So, a business with cash flows of $110,000 might list for $405,970. 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 Charlotte, BizBuySell.com determined that the median cash flow for Charlotte area businesses was $85,500 in Q3 2009. In Q3 2008, Charlotte cash flow multiples averaged 3.52 and the median cash flow was $107,207.

Number of Charlotte Businesses for Sale in the Dataset

The study data comprised 266 listings in the Charlotte-Gastonia-Concord, NC-SC metro area. As such, some of the businesses used to derive the median valuation might be outside of Charlotte, but they are in the area and so are probably representative of Charlotte business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for Charlotte spanned 227 listings. In a market where you would think fewer business owners would be selling, it's a bit surprising to see more Charlotte business-for-sale listings.

Can I Sell My Charlotte, NC Business Now?

Any business can be sold at any time. For example, a recent business-for-sale listing with flat sales over the past two years and slightly fluctuating cash flows was able to get five offers. With the right team helping you to sell a business, you can without a doubt arrive at an attractive business exit for the owner. This helpful business selling tip comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Charlotte, NC Businesses

If you are contemplating buying a business or selling a business and would like to get an estimated company valuation, 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 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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