September 24, 2020  
 
  Articles for Entrepreneurs  
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Q3 2009 Business Valuation Data

 

 

Sell My Fresno, CA Business

BizBuySell.com has just released its Fresno, California business-for-sale statistics.

Median Ask Prices for Fresno, CA 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 Fresno, CA metro area for the last 11 quarters.

Quarter

Median Ask

Q1 2007

$282,000

Q2 2007

$327,000

Q3 2007

$302,500

Q4 2007

$350,000

Q1 2008

$355,000

Q2 2008

$325,000

Q3 2008

$327,000

Q4 2008

$367,500

Q1 2009

$375,000

Q2 2009

$350,000

Q3 2009

$385,000

As you can see from the chart above, Fresno business-for-sale listings in Q3 2009 had a median asking price of $385,000.

That compares to a median ask price of $327,000 in Q3 2008. Because the median ask price for businesses for sale in Fresno has risen year over year, we can conclude that many smaller firms in Fresno are holding off on selling.

Revenue Multiples for Fresno, CA Businesses

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

Quarter

Revenue Multiple

Q1 2007

0.68

Q2 2007

1.01

Q3 2007

1.02

Q4 2007

0.88

Q1 2008

0.94

Q2 2008

0.81

Q3 2008

0.75

Q4 2008

0.70

Q1 2009

0.77

Q2 2009

0.84

Q3 2009

0.71

In the Fresno, CA metro area, small companies will usually sell for 0.71 times the selling company's revenues. As shown in the chart above, that was the mean revenue multiple for Q3 2009 in this area of the country.

In other words, a firm with revenues of $150,000 might list for $105,961. Remember, however, that this is just an average for revenue multiples in Fresno 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 Fresno business-for-sale listings was $493,500 in Q3 2009.

To give this some context, the Q3 2008 revenue multiple was 0.75 and the median revenue for listed Fresno businesses was $415,850.

Cash Flow Multiples for Fresno, CA Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

3.32

Q2 2007

3.78

Q3 2007

3.52

Q4 2007

3.75

Q1 2008

4.03

Q2 2008

3.62

Q3 2008

3.39

Q4 2008

3.36

Q1 2009

3.63

Q2 2009

3.68

Q3 2009

3.03

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 Fresno, CA metro area was 3.03.

So, a business with cash flows of $110,000 might list for $333,551. 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 Fresno, BizBuySell.com reports that the median cash flow for Fresno area businesses was $114,119 in Q3 2009. In Q3 2008, Fresno cash flow multiples averaged 3.39 and the median cash flow was $110,902.

Number of Fresno Businesses for Sale in the Dataset

The study data comprised 16 listings in the Fresno, CA metro area. As such, some of the businesses used to derive the median valuation might be outside of Fresno, but they are in the area and so are likely representative of Fresno business valuations.

In Q3 2008, just one year ago, there were 42 Fresno listings in the BizBuySell.com dataset. As a result of the recession, fewer Fresno business owners are selling because they hope to weather the storm and sell after the economy turns around.

Can I Sell My Fresno, CA 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 Fresno, CA Businesses

If you are considering buying a business or selling a business and would like to appraise the value of a specific business, 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 more information.

 

 

 

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