September 20, 2020  
 
  Articles for Entrepreneurs  
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Q3 2009 Business Valuation Data

 

 

Sell My Columbus, OH Business

We just received the latest Columbus, Ohio business valuation data for Third Quarter 2009.

Median Ask Prices for Columbus, OH Businesses

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

Quarter

Median Ask

Q1 2007

$295,000

Q2 2007

$137,500

Q3 2007

$204,500

Q4 2007

$200,000

Q1 2008

$262,500

Q2 2008

$214,500

Q3 2008

$250,000

Q4 2008

$174,500

Q1 2009

$165,000

Q2 2009

$180,000

Q3 2009

$185,000

As shown in the table, Columbus business-for-sale listings in Q3 2009 had a median asking price of $185,000.

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

Revenue Multiples for Columbus, OH Businesses

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

Quarter

Revenue Multiple

Q1 2007

0.88

Q2 2007

0.61

Q3 2007

0.82

Q4 2007

0.77

Q1 2008

0.88

Q2 2008

0.76

Q3 2008

0.84

Q4 2008

0.86

Q1 2009

0.83

Q2 2009

0.76

Q3 2009

0.75

In the Columbus, OH metro area, small companies will typically sell for 0.75 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 $111,846. Remember, however, that this is in fact an average for revenue multiples in the area. Some firms will have higher revenue multiples and others will have lower revenue multiples.

According to BizBuySell.com, the median revenues for its Columbus business-for-sale listings was $353,000 in Q3 2009.

To give this some context, the Q3 2008 revenue multiple was 0.84 and the median revenue for listed Columbus businesses was $400,000.

Cash Flow Multiples for Columbus, OH Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

4.74

Q2 2007

2.96

Q3 2007

3.77

Q4 2007

3.90

Q1 2008

4.44

Q2 2008

3.80

Q3 2008

3.81

Q4 2008

3.54

Q1 2009

3.32

Q2 2009

3.06

Q3 2009

2.86

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 Columbus, OH metro area was 2.86.

So, a company with cash flows of $110,000 might list for $314,349. That calculation is dependent on the business selling for the area's average multiple. The actual distribution on cash flow multiples for a given set of businesses can be quite wide-ranging.

If you are interested in what cash flows are for a business in Columbus, BizBuySell.com reports that the median cash flow for Columbus area businesses was $81,500 in Q3 2009. In Q3 2008, Columbus cash flow multiples averaged 3.81 and the median cash flow was $80,874.

Number of Columbus Businesses for Sale in the Dataset

The study data comprised 74 listings in the Columbus, OH metro area. As such, some of the businesses used to derive the median valuation might be outside of Columbus, but they are in the area and so are likely representative of Columbus business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for Columbus spanned 86 listings. The downward trend in the number of Columbus business-for-sale listings is indicative of the current down economy.

Can I Sell My Columbus, OH Business Now?

If you want to sell a business now, odds are you can sell now. You may even be able to get a premium acquisition price from a buyer. It all depends on how well you execute. Plenty of deals are getting done, all the time regardless of macro factors. This good selling-a-business tip comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Columbus, OH 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 published quarterly. If you find these trends interesting, take a moment to visit BizBuySell.com Insights Report for more information.

 

 

 

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