September 23, 2020  
 
  Articles for Entrepreneurs  
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Q3 2009 Business Valuation Data

 

 

Sell My Davidson, TN Business

We just received the latest Davidson, Tennessee business-for-sale statistics.

Median Ask Prices for Davidson, TN Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Nashville-Davidson--Murfreesboro, TN metro area for the last 11 quarters.

Quarter

Median Ask

Q1 2007

$280,000

Q2 2007

$275,000

Q3 2007

$290,000

Q4 2007

$299,000

Q1 2008

$280,000

Q2 2008

$299,950

Q3 2008

$322,500

Q4 2008

$315,000

Q1 2009

$330,000

Q2 2009

$350,000

Q3 2009

$355,000

As you can see from the chart above, Davidson business-for-sale listings in Q3 2009 had a median asking price of $355,000.

That compares to a median ask price of $322,500 in Q3 2008. Because the median ask price for businesses for sale in Davidson has risen year over year, we can conclude that many smaller firms in Davidson are holding off on selling.

Revenue Multiples for Davidson, TN Businesses

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

Quarter

Revenue Multiple

Q1 2007

1.41

Q2 2007

1.08

Q3 2007

1.09

Q4 2007

1.10

Q1 2008

1.00

Q2 2008

0.95

Q3 2008

0.94

Q4 2008

0.92

Q1 2009

0.93

Q2 2009

1.01

Q3 2009

0.95

In the Nashville-Davidson--Murfreesboro, TN metro area, small companies will usually sell for 0.95 times the selling company's revenues. As shown in the chart above, that was the mean revenue multiple for Q3 2009 in this metro area.

In other words, a business that has revenues of $150,000 might list for $142,715. Keep in mind that this is just an average for revenue multiples in the area. Some entities will have higher revenue multiples and others will have lower revenue multiples.

According to BizBuySell.com, the median revenues for its Davidson business-for-sale listings was $444,445 in Q3 2009.

To put this in perspective, the Q3 2008 revenue multiple was 0.94 and the median revenue for listed Davidson businesses was $500,000.

Cash Flow Multiples for Davidson, TN Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

4.33

Q2 2007

4.08

Q3 2007

4.07

Q4 2007

4.30

Q1 2008

4.25

Q2 2008

4.05

Q3 2008

4.00

Q4 2008

3.96

Q1 2009

3.96

Q2 2009

4.03

Q3 2009

3.90

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 Nashville-Davidson--Murfreesboro, TN metro area was 3.90.

So, a company with cash flows of $110,000 might list for $428,706. 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 Davidson, BizBuySell.com reports that the median cash flow for Davidson area businesses was $113,902 in Q3 2009. In Q3 2008, Davidson cash flow multiples averaged 4.00 and the median cash flow was $111,056.

Number of Davidson Businesses for Sale in the Dataset

The study data comprised 214 listings in the Nashville-Davidson--Murfreesboro, TN metro area. Many of the businesses in the dataset are outside of Davidson, but they are in the area and so are probably representative of Davidson business valuations.

In Q3 2008, just one year ago, there were 240 Davidson listings in the BizBuySell.com dataset. As a result of the recession, fewer Davidson business owners are selling because they hope to weather the storm and sell after the economy turns around.

Can I Sell My Davidson, TN Business Now?

It is a good time to sell a business. The market is turning and strategic buyers are very active. Many strategic buyers are flush with cash and see a great opportunity to grow market share and top-line revenues. For a selling SMB business owner, there is plenty of opportunity to cash out at a premium price. This advice on selling a business comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Davidson, TN 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 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 additional information.

 

 

 

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