Q3 2009 Business Valuation Data
Sell My Hartford, CT Business
We just received the latest Hartford, Connecticut business valuation data for Third Quarter 2009.
Median Ask Prices for Hartford, CT 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 Hartford-West Hartford-East Hartford, CT metro area for the last 11 quarters.
As you can see from the chart above, Hartford business-for-sale listings in Q3 2009 had a median asking price of $190,000.
That compares to a median ask price of $175,000 in Q3 2008. Because the median ask price for businesses for sale in Hartford has risen year over year, we can conclude that many smaller firms in Hartford are holding off on selling.
Revenue Multiples for Hartford, CT Businesses
Here is how median revenue multiples are trending in the Hartford area, based on BizBuySell.com's quarterly reports.
In the Hartford-West Hartford-East Hartford, CT metro area, small companies will usually sell for 0.59 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 $87,772. Remember, however, that this is in fact an average for revenue multiples in the area. Some entities will have higher revenue multiples and others will have lower revenue multiples.
According to BizBuySell.com, the median revenues for its Hartford business-for-sale listings was $418,489 in Q3 2009.
As a reference point, the Q3 2008 revenue multiple was 0.62 and the median revenue for listed Hartford businesses was $360,000.
Cash Flow Multiples for Hartford, CT Businesses
Here is how cash flow multiples are trending in the Hartford area, based on BizBuySell.com's quarterly reports.
Flow Multiple
As you probably know, cash flow multiples are another popular technique to value a business.
For Q3 2009, the average cash flow multiple for listed businesses in the Hartford-West Hartford-East Hartford, CT metro area was 2.80.
So, a company with cash flows of $110,000 might list for $308,296. 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 Hartford, BizBuySell.com reports that the median cash flow for Hartford area businesses was $95,264 in Q3 2009. In Q3 2008, Hartford cash flow multiples averaged 2.80 and the median cash flow was $90,000.
Number of Hartford Businesses for Sale in the Dataset
The study data comprised 196 listings in the Hartford-West Hartford-East Hartford, CT metro area. As such, some of the businesses used to derive the median valuation might be outside of Hartford, but they are in the area and so are probably representative of Hartford business valuations.
One year ago, in Q3 2008, the BizBuySell.com dataset for Hartford spanned 215 listings. The downward trend in the number of Hartford business-for-sale listings is indicative of the current down economy.
Can I Sell My Hartford, CT Business Now?
Any business can be sold at any time. For example, a recent business-for-sale listing with flat sales over the past two years and slightly fluctuating cash flows was able to get five offers. With the right team helping you to sell a business, you can without a doubt arrive at an attractive business exit for the owner. This helpful business selling tip comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.
Business Valuations for Hartford, CT 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 published quarterly. If you find these trends interesting, take a moment to visit BizBuySell.com Insights Report for more information.
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