September 27, 2020  
 
  Articles for Entrepreneurs  
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Q3 2009 Business Valuation Data

 

 

Sell My Fall River, MA Business

We just received the latest Fall River, Massachusetts business-for-sale statistics.

Median Ask Prices for Fall River, MA Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for companies in the Providence-New Bedford-Fall River, RI-MA metro area for the last 11 quarters.

Quarter

Median Ask

Q1 2007

$185,000

Q2 2007

$200,000

Q3 2007

$195,000

Q4 2007

$195,000

Q1 2008

$165,000

Q2 2008

$185,000

Q3 2008

$160,000

Q4 2008

$165,000

Q1 2009

$179,000

Q2 2009

$160,000

Q3 2009

$162,500

As shown in the table, Fall River business-for-sale listings in Q3 2009 had a median asking price of $162,500.

That compares to a median ask price of $160,000 in Q3 2008. Because the median ask price for businesses for sale in Fall River has risen year over year, we can conclude that many smaller firms in Fall River are holding off on selling.

Revenue Multiples for Fall River, MA Businesses

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

Quarter

Revenue Multiple

Q1 2007

0.77

Q2 2007

0.79

Q3 2007

0.77

Q4 2007

0.81

Q1 2008

0.80

Q2 2008

0.76

Q3 2008

0.75

Q4 2008

0.74

Q1 2009

0.70

Q2 2009

0.70

Q3 2009

0.69

In the Providence-New Bedford-Fall River, RI-MA metro area, small companies will typically sell for 0.69 times the selling company's revenues. The data from BizBuySell.com indicates that is the mean revenue multiple for Q3 2009 in this area of the country.

In other words, a business that has revenues of $150,000 might list for $102,959. Keep in mind that this is only an average for revenue multiples in Fall River 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 Fall River business-for-sale listings was $352,944 in Q3 2009.

To put this in perspective, the Q3 2008 revenue multiple was 0.75 and the median revenue for listed Fall River businesses was $353,300.

Cash Flow Multiples for Fall River, MA Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

3.34

Q2 2007

3.40

Q3 2007

3.24

Q4 2007

3.32

Q1 2008

3.22

Q2 2008

3.15

Q3 2008

3.20

Q4 2008

3.16

Q1 2009

3.14

Q2 2009

3.14

Q3 2009

3.22

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 Providence-New Bedford-Fall River, RI-MA metro area was 3.22.

So, a business with cash flows of $110,000 might list for $354,603. That's only if the firm complies with the local average. Most businesses will not conform to industry- or area averages.

In case you were wondering what typical cash flows are for a business in Fall River, BizBuySell.com reports that the median cash flow for Fall River area businesses was $75,000 in Q3 2009. In Q3 2008, Fall River cash flow multiples averaged 3.20 and the median cash flow was $79,405.

Number of Fall River Businesses for Sale in the Dataset

The study data comprised 226 listings in the Providence-New Bedford-Fall River, RI-MA metro area. As such, some of the businesses used to derive the median valuation might be outside of Fall River, but they are in the area and so are likely representative of Fall River business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for Fall River spanned 240 listings. The downward trend in the number of Fall River business-for-sale listings is indicative of the current down economy.

Can I Sell My Fall River, MA 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 Fall River, MA 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 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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