September 20, 2020  
 
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Q3 2009 Business Valuation Data

 

 

Sell My Honolulu, HI Business

Every quarter, BizBuySell.com publishes business valuation data, and we now have their latest Honolulu, Hawaii small business valuation trend data for Third Quarter 2009.

Median Ask Prices for Honolulu, HI Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Honolulu, HI metro area for the last 11 quarters.

Quarter

Median Ask

Q1 2007

$350,000

Q2 2007

$275,450

Q3 2007

$150,000

Q4 2007

$160,000

Q1 2008

$297,000

Q2 2008

$472,000

Q3 2008

$446,500

Q4 2008

$398,000

Q1 2009

$335,000

Q2 2009

$385,000

Q3 2009

$295,000

As shown in the table, Honolulu business-for-sale listings in Q3 2009 had a median asking price of $295,000.

That compares to a median ask price of $446,500 in Q3 2008. Given that Honolulu, HI median business asking prices appear to be dropping, it suggests that selling Honolulu businesses may be lowering their prices to make their businesses more attractive to buyers.

Revenue Multiples for Honolulu, HI Businesses

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

Quarter

Revenue Multiple

Q1 2007

0.91

Q2 2007

0.59

Q3 2007

0.46

Q4 2007

0.55

Q1 2008

0.58

Q2 2008

0.64

Q3 2008

0.78

Q4 2008

0.85

Q1 2009

0.87

Q2 2009

0.76

Q3 2009

0.63

In the Honolulu, HI metro area, small companies will typically sell for 0.63 times the selling company's revenues. As the table above indicates, this 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 $93,915. 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 Honolulu business-for-sale listings was $750,000 in Q3 2009.

To put this in perspective, the Q3 2008 revenue multiple was 0.78 and the median revenue for listed Honolulu businesses was $852,434.

Cash Flow Multiples for Honolulu, HI Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

5.31

Q2 2007

2.39

Q3 2007

2.19

Q4 2007

2.49

Q1 2008

2.71

Q2 2008

3.14

Q3 2008

2.91

Q4 2008

3.26

Q1 2009

3.09

Q2 2009

2.88

Q3 2009

2.93

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 Honolulu, HI metro area was 2.93.

So, a business with cash flows of $110,000 might list for $321,907. That calculation is dependent on the business selling for the area's average multiple. Most businesses will not conform to industry- or area averages.

If you are interested in what cash flows are for a business in Honolulu, BizBuySell.com reports that the median cash flow for Honolulu area businesses was $157,721 in Q3 2009. In Q3 2008, Honolulu cash flow multiples averaged 2.91 and the median cash flow was $150,556.

Number of Honolulu Businesses for Sale in the Dataset

The study data comprised 23 listings in the Honolulu, HI metro area. As such, some of the businesses used to derive the median valuation might be outside of Honolulu, but they are in the area and so are likely representative of Honolulu business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for Honolulu spanned 28 listings. The downward trend in the number of Honolulu business-for-sale listings is indicative of the current down economy.

Can I Sell My Honolulu, HI 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 Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Honolulu, HI 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 suggest you try 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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