September 28, 2020  
 
  Articles for Entrepreneurs  
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Q3 2009 Business Valuation Data

 

 

Sell My Jacksonville, FL Business

We just received the latest Jacksonville, Florida statistics on business valuations for Third Quarter 2009.

Median Ask Prices for Jacksonville, FL Businesses

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

Quarter

Median Ask

Q1 2007

$225,000

Q2 2007

$190,000

Q3 2007

$200,000

Q4 2007

$200,000

Q1 2008

$200,000

Q2 2008

$200,000

Q3 2008

$185,000

Q4 2008

$195,000

Q1 2009

$197,500

Q2 2009

$184,500

Q3 2009

$185,000

As you can see from the chart above, Jacksonville business-for-sale listings in Q3 2009 had a median asking price of $185,000.

That compares to a median ask price of $185,000 in Q3 2008. In spite of the difficult economy, Jacksonville, FL business valuations appear to be relatively stable.

Revenue Multiples for Jacksonville, FL Businesses

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

Quarter

Revenue Multiple

Q1 2007

0.82

Q2 2007

0.80

Q3 2007

0.90

Q4 2007

1.01

Q1 2008

1.00

Q2 2008

0.99

Q3 2008

0.96

Q4 2008

0.97

Q1 2009

0.92

Q2 2009

0.89

Q3 2009

0.86

In the Jacksonville, FL metro area, businesses will usually sell for 0.86 times the selling company's revenues. As the table above indicates, this 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 $128,459. Remember, however, that this is in fact 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 Jacksonville business-for-sale listings was $335,305 in Q3 2009.

To put this in perspective, the Q3 2008 revenue multiple was 0.96 and the median revenue for listed Jacksonville businesses was $305,779.

Cash Flow Multiples for Jacksonville, FL Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

3.33

Q2 2007

3.38

Q3 2007

3.51

Q4 2007

3.66

Q1 2008

3.72

Q2 2008

3.74

Q3 2008

3.62

Q4 2008

3.56

Q1 2009

3.48

Q2 2009

3.41

Q3 2009

3.06

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 Jacksonville, FL metro area was 3.06.

So, a firm with cash flows of $110,000 might list for $337,012. That's only if the firm complies with the local average. Actual cash flow multiples are based on business specifics.

In case you were wondering what typical cash flows are for a business in Jacksonville, BizBuySell.com reports that the median cash flow for Jacksonville area businesses was $86,800 in Q3 2009. In Q3 2008, Jacksonville cash flow multiples averaged 3.62 and the median cash flow was $80,124.

Number of Jacksonville Businesses for Sale in the Dataset

The study data comprised 429 listings in the Jacksonville, FL metro area. As such, some of the businesses used to derive the median valuation might be outside of Jacksonville, but they are in the area and so are probably representative of Jacksonville business valuations.

In Q3 2008, just one year ago, there were 443 Jacksonville listings in the BizBuySell.com dataset. As a result of the recession, fewer Jacksonville business owners are selling because they hope to weather the storm and sell after the economy turns around.

Should I Sell My Jacksonville, FL Business Now?

If you want to sell a business now, odds are you can sell now. You may even be able to get a premium acquisition price from a buyer. It all depends on how well you execute. Plenty of deals are getting done, all the time regardless of macro factors. This good selling-a-business tip comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Jacksonville, FL 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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