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

 

 

Sell My Dayton, OH Business

We just received the latest Dayton, Ohio business-for-sale statistics.

Median Ask Prices for Dayton, OH Businesses

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

Quarter

Median Ask

Q1 2007

$262,500

Q2 2007

$262,500

Q3 2007

$257,500

Q4 2007

$315,000

Q1 2008

$350,000

Q2 2008

$395,000

Q3 2008

$375,000

Q4 2008

$395,000

Q1 2009

$400,000

Q2 2009

$450,000

Q3 2009

$550,000

As you can see from the chart above, Dayton business-for-sale listings in Q3 2009 had a median asking price of $550,000.

That compares to a median ask price of $375,000 in Q3 2008. Because the median ask price for businesses for sale in Dayton has risen year over year, we can conclude that many smaller firms in Dayton are holding off on selling.

Revenue Multiples for Dayton, OH Businesses

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

Quarter

Revenue Multiple

Q1 2007

0.91

Q2 2007

1.05

Q3 2007

0.99

Q4 2007

0.99

Q1 2008

1.13

Q2 2008

1.15

Q3 2008

1.14

Q4 2008

1.00

Q1 2009

0.98

Q2 2009

1.10

Q3 2009

1.28

In the Dayton, OH metro area, small companies will usually sell for 1.28 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 firm with revenues of $150,000 might list for $192,476. Remember, however, 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 Dayton business-for-sale listings was $543,000 in Q3 2009.

As a reference point, the Q3 2008 revenue multiple was 1.14 and the median revenue for listed Dayton businesses was $478,000.

Cash Flow Multiples for Dayton, OH Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

4.28

Q2 2007

3.82

Q3 2007

3.73

Q4 2007

4.00

Q1 2008

4.16

Q2 2008

4.32

Q3 2008

4.31

Q4 2008

4.17

Q1 2009

4.37

Q2 2009

4.68

Q3 2009

5.25

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 Dayton, OH metro area was 5.25.

So, a business with cash flows of $110,000 might list for $577,337. That's only if the firm complies with the local average. Cash flow multiples will usually vary considerably based on many factors.

If you are interested in what cash flows are for a business in Dayton, BizBuySell.com reports that the median cash flow for Dayton area businesses was $115,409 in Q3 2009. In Q3 2008, Dayton cash flow multiples averaged 4.31 and the median cash flow was $100,000.

Number of Dayton Businesses for Sale in the Dataset

The study data comprised 52 listings in the Dayton, OH metro area. Many of the businesses in the dataset are outside of Dayton, but they are in the area and so are probably representative of Dayton business valuations.

In Q3 2008, just one year ago, there were 77 Dayton listings in the BizBuySell.com dataset. As a result of the recession, fewer Dayton business owners are selling because they hope to weather the storm and sell after the economy turns around.

Can I Sell My Dayton, OH Business Now?

If you are trying to decide if this is a good time to sell a business, hire a third-party business appraisal firm to determine a business valuation for the company. This exercise should give you much better insights on whether it's a good time to sell or not. A consultation with a qualified business broker will also be very helpful to you. This useful business selling advice comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Dayton, OH 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 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 additional information.

 

 

 

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