September 23, 2020  
 
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Q3 2009 Business Valuation Data

 

 

Sell My Gastonia, NC Business

We just received the latest Gastonia, North Carolina business valuation data for Third Quarter 2009.

Median Ask Prices for Gastonia, NC Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Charlotte-Gastonia-Concord, NC-SC metro area for the last 11 quarters.

Quarter

Median Ask

Q1 2007

$312,500

Q2 2007

$273,000

Q3 2007

$300,000

Q4 2007

$350,000

Q1 2008

$325,000

Q2 2008

$300,000

Q3 2008

$325,000

Q4 2008

$300,000

Q1 2009

$275,000

Q2 2009

$250,000

Q3 2009

$249,950

As shown in the table, Gastonia business-for-sale listings in Q3 2009 had a median asking price of $249,950.

That compares to a median ask price of $325,000 in Q3 2008. The lower median asking price in last quarter suggests that Gastonia, NC 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 Gastonia, NC Businesses

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

Quarter

Revenue Multiple

Q1 2007

0.77

Q2 2007

0.82

Q3 2007

0.82

Q4 2007

0.77

Q1 2008

0.79

Q2 2008

0.80

Q3 2008

0.85

Q4 2008

0.80

Q1 2009

0.78

Q2 2009

0.79

Q3 2009

0.76

In the Charlotte-Gastonia-Concord, NC-SC metro area, businesses will typically sell for 0.76 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 business that has revenues of $150,000 might list for $114,139. Remember, however, that this is just an average for revenue multiples in the area. Some firms will have higher revenue multiples and others will have lower revenue multiples.

According to BizBuySell.com, the median revenues for its Gastonia business-for-sale listings was $400,000 in Q3 2009.

To put this in perspective, the Q3 2008 revenue multiple was 0.85 and the median revenue for listed Gastonia businesses was $570,000.

Cash Flow Multiples for Gastonia, NC Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

3.41

Q2 2007

3.38

Q3 2007

3.47

Q4 2007

3.45

Q1 2008

3.41

Q2 2008

3.26

Q3 2008

3.52

Q4 2008

3.32

Q1 2009

3.53

Q2 2009

3.78

Q3 2009

3.69

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 Charlotte-Gastonia-Concord, NC-SC metro area was 3.69.

So, a business with cash flows of $110,000 might list for $405,970. That calculation is dependent on the business selling for the area's average multiple. In practice, cash flow multiples can vary considerably from one business type to another.

In case you were wondering what typical cash flows are for a business in Gastonia, BizBuySell.com reports that the median cash flow for Gastonia area businesses was $85,500 in Q3 2009. In Q3 2008, Gastonia cash flow multiples averaged 3.52 and the median cash flow was $107,207.

Number of Gastonia Businesses for Sale in the Dataset

The study data comprised 266 listings in the Charlotte-Gastonia-Concord, NC-SC metro area. Many of the businesses in the dataset are outside of Gastonia, but they are in the area and so are probably representative of Gastonia business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for Gastonia spanned 227 listings. In a market where you would think fewer business owners would be selling it's a bit surprising to see more Gastonia business-for-sale listings.

Should I Sell My Gastonia, NC Business Now?

You can absolutely sell in this market. Deals are getting done every day. You just have to structure the deal properly. In this down economy, performance based pricing is very popular. When buyers and sellers differ on valuations, tools such as earnouts, equity ownership or profit sharing can bridge the valuation gap. In effect, this is a deferred purchase price, but it's a way to get a deal done in a tough economic climate. This helpful tip comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Gastonia, NC Businesses

If you are contemplating buying a business or selling a business and would like to get an estimated company valuation, 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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