September 21, 2020  
 
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Q3 2009 Business Valuation Data

 

 

Sell My Fort Lauderdale, FL Business

We just received the latest Fort Lauderdale, Florida business valuation data for Third Quarter 2009.

Median Ask Prices for Fort Lauderdale, FL Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Miami-Fort Lauderdale-Miami Beach, FL metro area for the last 11 quarters.

Quarter

Median Ask

Q1 2007

$249,500

Q2 2007

$280,000

Q3 2007

$300,000

Q4 2007

$300,000

Q1 2008

$299,000

Q2 2008

$295,000

Q3 2008

$295,000

Q4 2008

$275,000

Q1 2009

$265,000

Q2 2009

$260,000

Q3 2009

$250,000

As you can see from the chart above, Fort Lauderdale business-for-sale listings in Q3 2009 had a median asking price of $250,000.

That compares to a median ask price of $295,000 in Q3 2008. The lower median asking price in last quarter suggests that Fort Lauderdale, FL sellers are dropping their asking prices in light of market conditions. This is making it possible for more business-for-sale transactions to close.

Revenue Multiples for Fort Lauderdale, FL Businesses

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

Quarter

Revenue Multiple

Q1 2007

1.08

Q2 2007

1.16

Q3 2007

1.08

Q4 2007

1.03

Q1 2008

0.98

Q2 2008

0.98

Q3 2008

1.03

Q4 2008

0.87

Q1 2009

0.89

Q2 2009

0.90

Q3 2009

0.90

In the Miami-Fort Lauderdale-Miami Beach, FL metro area, small companies will usually sell for 0.90 times the selling company's revenues. As shown in the chart above, that was the mean revenue multiple for Q3 2009 in this part of the country.

In other words, a firm with revenues of $150,000 might list for $134,525. Remember, however, that this is just an average for revenue multiples in Fort Lauderdale and surrounding communities. Some entities will have higher revenue multiples and others will have lower revenue multiples.

According to BizBuySell.com, the median revenues for its Fort Lauderdale business-for-sale listings was $403,492 in Q3 2009.

To give this some context, the Q3 2008 revenue multiple was 1.03 and the median revenue for listed Fort Lauderdale businesses was $448,418.

Cash Flow Multiples for Fort Lauderdale, FL Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

3.12

Q2 2007

3.37

Q3 2007

3.43

Q4 2007

3.38

Q1 2008

3.38

Q2 2008

3.32

Q3 2008

3.38

Q4 2008

3.16

Q1 2009

3.22

Q2 2009

3.20

Q3 2009

3.12

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 Miami-Fort Lauderdale-Miami Beach, FL metro area was 3.12.

So, a business with cash flows of $110,000 might list for $342,656. That calculation is dependent on the business selling for the area's average multiple. Most businesses will not conform to industry- or area averages.

In case you were wondering what typical cash flows are for a business in Fort Lauderdale, BizBuySell.com reports that the median cash flow for Fort Lauderdale area businesses was $106,030 in Q3 2009. In Q3 2008, Fort Lauderdale cash flow multiples averaged 3.38 and the median cash flow was $112,752.

Number of Fort Lauderdale Businesses for Sale in the Dataset

The study data comprised 1751 listings in the Miami-Fort Lauderdale-Miami Beach, FL metro area. As such, some of the businesses used to derive the median valuation might be outside of Fort Lauderdale, but they are in the area and so are probably representative of Fort Lauderdale business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for Fort Lauderdale spanned 2264 listings. The downward trend in the number of Fort Lauderdale business-for-sale listings is indicative of the current down economy.

Can I Sell My Fort Lauderdale, FL 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 Fort Lauderdale, FL 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 additional information.

 

 

 

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