Q3 2009 Business Valuation Data
Sell My Jefferson County, IN Business
We just received the latest Jefferson County, Indiana business valuation data for Third Quarter 2009.
Median Ask Prices for Jefferson County, IN Businesses
If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Louisville-Jefferson County, KY-IN metro area for the last 11 quarters.
As shown in the table, Jefferson County business-for-sale listings in Q3 2009 had a median asking price of $249,250.
That compares to a median ask price of $240,000 in Q3 2008. Because the median ask price for businesses for sale in Jefferson County has risen year over year, we can conclude that many smaller firms in Jefferson County are holding off on selling.
Revenue Multiples for Jefferson County, IN Businesses
Here is how median revenue multiples are tracking in the Jefferson County area, based on BizBuySell.com's quarterly reports.
In the Louisville-Jefferson County, KY-IN metro area, companies will typically sell for 0.87 times the selling company's revenues. As the table above indicates, this was the mean revenue multiple for Q3 2009 in this metro area.
In other words, a business that has revenues of $150,000 might list for $130,957. Remember, however, that this is in fact an average for revenue multiples in Jefferson County and surrounding communities. Some small businesses will have higher revenue multiples and others will have lower revenue multiples.
According to BizBuySell.com, the median revenues for its Jefferson County business-for-sale listings was $405,000 in Q3 2009.
To put this in perspective, the Q3 2008 revenue multiple was 0.84 and the median revenue for listed Jefferson County businesses was $380,000.
Cash Flow Multiples for Jefferson County, IN Businesses
Here is how cash flow multiples are trending in the Jefferson County area, based on BizBuySell.com's quarterly reports.
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 Louisville-Jefferson County, KY-IN metro area was 4.40.
So, a business with cash flows of $110,000 might list for $483,988. That's only if the firm complies with the local average. Most businesses will not conform to industry- or area averages.
In case you were wondering what typical cash flows are for a business in Jefferson County, BizBuySell.com found that the median cash flow for Jefferson County area businesses was $79,700 in Q3 2009. In Q3 2008, Jefferson County cash flow multiples averaged 4.17 and the median cash flow was $75,000.
Number of Jefferson County Businesses for Sale in the Dataset
The study data comprised 58 listings in the Louisville-Jefferson County, KY-IN metro area. As such, some of the businesses used to derive the median valuation might be outside of Jefferson County, but they are nearby and so are probably representative of Jefferson County business valuations.
In Q3 2008, just one year ago, there were 89 Jefferson County listings in the BizBuySell.com dataset. As a result of the recession, fewer Jefferson County business owners are selling because they hope to weather the storm and sell after the economy turns around.
Can I Sell My Jefferson County, IN 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 Sun Acquisitions, a leading business brokerage firm.
Business Valuations for Jefferson County, IN 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 more information.
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