September 26, 2020  
 
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Q3 2009 Business Valuation Data

 

 

Sell My High Point, NC Business

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

Median Ask Prices for High Point, NC Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses 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 shown in the table, High Point 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 High Point has risen year over year, we can conclude that many smaller firms in High Point are holding off on selling.

Revenue Multiples for High Point, NC Businesses

Here is how median revenue multiples are changing in the High Point area, based on BizBuySell.com's quarterly reports.

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, companies will usually sell for 0.79 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 business that has revenues of $150,000 might list for $118,589. Remember, however, that this is just an average for revenue multiples in High Point and surrounding communities. Some firms will have higher revenue multiples and others will have lower revenue multiples.

According to BizBuySell.com, the median revenues for its High Point business-for-sale listings was $434,190 in Q3 2009.

In terms of trending year over year, the Q3 2008 revenue multiple was 0.77 and the median revenue for listed High Point businesses was $342,344.

Cash Flow Multiples for High Point, NC Businesses

Here is how cash flow multiples are trending in the High Point 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 businesses listed in the Greensboro-High Point, NC metro area was 3.20.

So, a firm 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 High Point, BizBuySell.com found that the median cash flow for High Point area businesses was $87,000 in Q3 2009. In Q3 2008, High Point cash flow multiples averaged 2.98 and the median cash flow was $82,124.

Number of High Point 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 High Point, but they are nearby and so are probably representative of High Point business valuations.

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

Should I Sell My High Point, NC Business Now?

Selling a business now is the right decision for many business owners. That's because it's a great time to sell given the sheer number of buyers in the marketplace right now. Laid-off executives, for example, our turning to entrepreneurship and are actively exploring business-for-sale opportunities. If your business has solid fundamentals and you have a good plan, your next step should be to talk to a professional intermediary who can help you to package up the business for sale and get maximize your business sale price. This helpful tip comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for High Point, 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 additional information.

 

 

 

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