September 24, 2020  
 
  Articles for Entrepreneurs  
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Q3 2009 Business Valuation Data

 

 

Sell My Hoover, AL Business

We just received the latest Hoover, Alabama business-for-sale statistics.

Median Ask Prices for Hoover, AL Businesses

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

Quarter

Median Ask

Q1 2007

$296,000

Q2 2007

$200,000

Q3 2007

$217,500

Q4 2007

$245,000

Q1 2008

$225,000

Q2 2008

$232,500

Q3 2008

$262,500

Q4 2008

$332,000

Q1 2009

$277,500

Q2 2009

$250,000

Q3 2009

$250,000

As you can see from the chart above, Hoover business-for-sale listings in Q3 2009 had a median asking price of $250,000.

That compares to a median ask price of $262,500 in Q3 2008. The lower median asking price in last quarter suggests that Hoover, AL 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 Hoover, AL Businesses

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

Quarter

Revenue Multiple

Q1 2007

0.68

Q2 2007

0.76

Q3 2007

0.76

Q4 2007

0.95

Q1 2008

0.89

Q2 2008

0.85

Q3 2008

0.88

Q4 2008

0.89

Q1 2009

0.89

Q2 2009

1.04

Q3 2009

1.10

In the Birmingham-Hoover, AL metro area, small businesses will typically sell for 1.10 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 business that has revenues of $150,000 might list for $165,553. 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 Hoover business-for-sale listings was $380,000 in Q3 2009.

To put this in perspective, the Q3 2008 revenue multiple was 0.88 and the median revenue for listed Hoover businesses was $442,500.

Cash Flow Multiples for Hoover, AL Businesses

The table below shows how cash flow multiples are trending in the Hoover area, based on BizBuySell.com's quarterly reports.

Quarter

Median Cash
Flow Multiple

Q1 2007

3.12

Q2 2007

3.51

Q3 2007

3.43

Q4 2007

3.89

Q1 2008

3.62

Q2 2008

3.71

Q3 2008

3.65

Q4 2008

3.75

Q1 2009

3.66

Q2 2009

3.91

Q3 2009

4.01

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 Birmingham-Hoover, AL metro area was 4.01.

So, a business with cash flows of $110,000 might list for $441,362. 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 Hoover, BizBuySell.com found that the median cash flow for Hoover area businesses was $97,000 in Q3 2009. In Q3 2008, Hoover cash flow multiples averaged 3.65 and the median cash flow was $91,988.

Number of Hoover Businesses for Sale in the Dataset

The study data comprised 59 listings in the Birmingham-Hoover, AL metro area. Many of the businesses in the dataset are outside of Hoover, but they are in the area and so are probably representative of Hoover business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for Hoover spanned 92 listings. The downward trend in the number of Hoover business-for-sale listings is indicative of the current down economy.

Should I Sell My Hoover, AL Business Now?

Selling a business is something you should start preparing to do long before you actually want to sell a business. A common mistake is to wait too long to learn about what it takes to sell a business for a premium price. Even if you don't plan on pursuing an exit for several years, you should start the process now. This useful tip for selling a business comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Hoover, AL Businesses

If you are thinking about 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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