September 22, 2020  
 
  Articles for Entrepreneurs  
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Q3 2009 Business Valuation Data

 

 

Sell My Contra Costa, CA Business

Every quarter, BizBuySell.com publishes business valuation data, and we now have their latest Contra Costa, California business valuation data for Third Quarter 2009.

Median Ask Prices for Contra Costa, CA Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Contra Costa-Alameda-Solano, CA metro area for the last 11 quarters.

Quarter

Median Ask

Q2 2007

$287,000

Q2 2008

$250,000

Q3 2008

$250,000

Q4 2008

$222,000

Q1 2009

$230,000

Q2 2009

$225,000

Q3 2009

$225,000

As you can see from the chart above, Contra Costa business-for-sale listings in Q3 2009 had a median asking price of $225,000.

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

Revenue Multiples for Contra Costa, CA Businesses

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

Quarter

Revenue Multiple

Q2 2007

0.85

Q2 2008

0.74

Q3 2008

0.75

Q4 2008

0.70

Q1 2009

0.59

Q2 2009

0.58

Q3 2009

0.57

In the Contra Costa-Alameda-Solano, CA metro area, small companies will usually sell for 0.57 times the selling company's revenues. As the table above indicates, this was the mean revenue multiple for Q3 2009 in this metro area.

In other words, a firm with revenues of $150,000 might list for $84,834. Remember, however, that this is just 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 Contra Costa business-for-sale listings was $511,794 in Q3 2009.

To give this some context, the Q3 2008 revenue multiple was 0.75 and the median revenue for listed Contra Costa businesses was $443,827.

Cash Flow Multiples for Contra Costa, CA Businesses

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

Quarter

Median Cash
Flow Multiple

Q2 2007

3.31

Q2 2008

3.47

Q3 2008

3.51

Q4 2008

3.44

Q1 2009

3.22

Q2 2009

3.17

Q3 2009

2.93

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 Contra Costa-Alameda-Solano, CA metro area was 2.93.

So, a firm with cash flows of $110,000 might list for $322,816. That calculation is dependent on the business selling for the area's average multiple. Most businesses will not conform to industry- or area averages.

If you are interested in what cash flows are for a business in Contra Costa, BizBuySell.com reports that the median cash flow for Contra Costa area businesses was $100,000 in Q3 2009. In Q3 2008, Contra Costa cash flow multiples averaged 3.51 and the median cash flow was $100,000.

Number of Contra Costa Businesses for Sale in the Dataset

The study data comprised 158 listings in the Contra Costa-Alameda-Solano, CA metro area. Many of the businesses in the dataset are outside of Contra Costa, but they are close by and so are likely representative of Contra Costa business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for Contra Costa spanned 253 listings. The downward trend in the number of Contra Costa business-for-sale listings is indicative of the current down economy.

Can I Sell My Contra Costa, CA Business Now?

The decision to sell now or wait until later should be based on your own personal circumstances and your business's circumstances. A short consultation with a business broker can help you determine whether now is the right time to sell. This useful tip comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Contra Costa, CA Businesses

If you are considering 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 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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