September 20, 2020  
 
  Articles for Entrepreneurs  
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Q3 2009 Business Valuation Data

 

 

Sell My Greensboro, NC Business

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

Median Ask Prices for Greensboro, NC Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for companies in the Greensboro-High Point, NC metro area for the last 11 quarters.

Quarter

Median Ask

Q1 2007

$135,000

Q2 2007

$240,000

Q3 2007

$250,000

Q4 2007

$245,000

Q1 2008

$220,000

Q2 2008

$200,000

Q3 2008

$195,000

Q4 2008

$195,000

Q1 2009

$200,000

Q2 2009

$200,000

Q3 2009

$212,500

As you can see from the chart above, Greensboro business-for-sale listings in Q3 2009 had a median asking price of $212,500.

That compares to a median ask price of $195,000 in Q3 2008. Because the median ask price for businesses for sale in Greensboro has risen year over year, we can conclude that many smaller firms in Greensboro are holding off on selling.

Revenue Multiples for Greensboro, NC Businesses

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

Quarter

Revenue Multiple

Q1 2007

0.78

Q2 2007

0.74

Q3 2007

0.99

Q4 2007

0.83

Q1 2008

0.81

Q2 2008

0.80

Q3 2008

0.77

Q4 2008

0.82

Q1 2009

0.78

Q2 2009

0.81

Q3 2009

0.79

In the Greensboro-High Point, NC metro area, small companies will usually sell for 0.79 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 firm with revenues of $150,000 might list for $118,589. 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 Greensboro business-for-sale listings was $434,190 in Q3 2009.

To put this in perspective, the Q3 2008 revenue multiple was 0.77 and the median revenue for listed Greensboro businesses was $342,344.

Cash Flow Multiples for Greensboro, NC Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

2.65

Q2 2007

3.35

Q3 2007

3.68

Q4 2007

3.31

Q1 2008

3.11

Q2 2008

3.10

Q3 2008

2.98

Q4 2008

3.01

Q1 2009

2.85

Q2 2009

2.99

Q3 2009

3.20

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 Greensboro-High Point, NC metro area was 3.20.

So, a business with cash flows of $110,000 might list for $351,720. That's only if the firm complies with the local average. Cash flow multiples will usually vary considerably based on many factors.

If you are interested in what cash flows are for a business in Greensboro, BizBuySell.com reports that the median cash flow for Greensboro area businesses was $87,000 in Q3 2009. In Q3 2008, Greensboro cash flow multiples averaged 2.98 and the median cash flow was $82,124.

Number of Greensboro Businesses for Sale in the Dataset

The study data comprised 48 listings in the Greensboro-High Point, NC metro area. As such, some of the businesses used to derive the median valuation might be outside of Greensboro, but they are close by and so are probably representative of Greensboro business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for Greensboro spanned 72 listings. The downward trend in the number of Greensboro business-for-sale listings is indicative of the current down economy.

Can I Sell My Greensboro, NC Business Now?

While some business owners are waiting to sell until the market turns around, this can be a mistake. When the market turns around, many businesses will rush to list themselves for sale and this could lead to lower sale prices because of the basic laws of supply and demand. For this reason, it might make sense to act counterintuitively to common wisdom on when it's the right time to sell a business. This good advice comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Greensboro, NC 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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