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

 

 

Sell My Elyria, OH Business

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

Median Ask Prices for Elyria, OH Businesses

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

Quarter

Median Ask

Q1 2007

$246,586

Q2 2007

$217,500

Q3 2007

$180,000

Q4 2007

$185,000

Q1 2008

$199,000

Q2 2008

$199,000

Q3 2008

$180,000

Q4 2008

$180,000

Q1 2009

$177,500

Q2 2009

$168,772

Q3 2009

$190,000

As shown in the table, Elyria business-for-sale listings in Q3 2009 had a median asking price of $190,000.

That compares to a median ask price of $180,000 in Q3 2008. Because the median ask price for businesses for sale in Elyria has risen year over year, we can conclude that many smaller firms in Elyria are holding off on selling.

Revenue Multiples for Elyria, OH Businesses

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

Quarter

Revenue Multiple

Q1 2007

0.58

Q2 2007

0.64

Q3 2007

0.70

Q4 2007

0.69

Q1 2008

0.69

Q2 2008

0.74

Q3 2008

0.77

Q4 2008

0.72

Q1 2009

0.75

Q2 2009

0.73

Q3 2009

0.67

In the Cleveland-Elyria-Mentor, OH metro area, small companies will usually sell for 0.67 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 business that has revenues of $150,000 might list for $101,026. Keep in mind that this is just an average for revenue multiples in Elyria and surrounding communities. Some small businesses will have higher revenue multiples and others will have lower revenue multiples.

According to BizBuySell.com, the median revenues for its Elyria business-for-sale listings was $323,037 in Q3 2009.

To put this in perspective, the Q3 2008 revenue multiple was 0.77 and the median revenue for listed Elyria businesses was $311,582.

Cash Flow Multiples for Elyria, OH Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

3.12

Q2 2007

3.15

Q3 2007

3.61

Q4 2007

3.57

Q1 2008

3.32

Q2 2008

3.44

Q3 2008

3.46

Q4 2008

3.45

Q1 2009

3.45

Q2 2009

3.06

Q3 2009

3.15

As you probably know, cash flow multiples are another useful method to value a business.

For Q3 2009, the average cash flow multiple for listed businesses in the Cleveland-Elyria-Mentor, OH metro area was 3.15.

So, a company with cash flows of $110,000 might list for $346,199. 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 Elyria, BizBuySell.com found that the median cash flow for Elyria area businesses was $64,128 in Q3 2009. In Q3 2008, Elyria cash flow multiples averaged 3.46 and the median cash flow was $72,000.

Number of Elyria Businesses for Sale in the Dataset

The study data comprised 78 listings in the Cleveland-Elyria-Mentor, OH metro area. As such, some of the businesses used to derive the median valuation might be outside of Elyria, but they are nearby and so are probably representative of Elyria business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for Elyria spanned 109 listings. In a market where you would think fewer business owners would be selling, it's a bit surprising to see more Elyria business-for-sale listings.

Can I Sell My Elyria, 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 Elyria, 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 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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