September 29, 2020  
 
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Q3 2009 Business Valuation Data

 

 

Sell My Joliet, IL Business

BizBuySell.com has just released its Joliet, Illinois business valuation data for Third Quarter 2009.

Median Ask Prices for Joliet, IL Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for companies in the Chicago-Naperville-Joliet, IL-IN-WI metro area for the last 11 quarters.

Quarter

Median Ask

Q1 2007

$250,000

Q2 2007

$285,000

Q3 2007

$275,000

Q4 2007

$250,000

Q1 2008

$260,000

Q2 2008

$280,000

Q3 2008

$292,000

Q4 2008

$275,000

Q1 2009

$275,000

Q2 2009

$272,500

Q3 2009

$250,000

As shown in the table, Joliet business-for-sale listings in Q3 2009 had a median asking price of $250,000.

That compares to a median ask price of $292,000 in Q3 2008. The lower median asking price in last quarter suggests that Joliet, IL 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 Joliet, IL Businesses

Here is how median revenue multiples are trending in the Joliet area, based on BizBuySell.com's economic data.

Quarter

Revenue Multiple

Q1 2007

1.26

Q2 2007

1.19

Q3 2007

0.90

Q4 2007

0.82

Q1 2008

0.85

Q2 2008

0.84

Q3 2008

0.86

Q4 2008

0.80

Q1 2009

0.82

Q2 2009

0.86

Q3 2009

0.82

In the Chicago-Naperville-Joliet, IL-IN-WI metro area, small businesses will typically sell for 0.82 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 $122,348. Remember, however, that this is just an average for revenue multiples in the area. Some small businesses will have higher revenue multiples and others will have lower revenue multiples.

According to BizBuySell.com, the median revenues for its Joliet business-for-sale listings was $449,865 in Q3 2009.

To put this in perspective, the Q3 2008 revenue multiple was 0.86 and the median revenue for listed Joliet businesses was $430,000.

Cash Flow Multiples for Joliet, IL Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

4.33

Q2 2007

3.94

Q3 2007

3.65

Q4 2007

3.44

Q1 2008

3.38

Q2 2008

3.32

Q3 2008

3.42

Q4 2008

3.23

Q1 2009

3.28

Q2 2009

3.42

Q3 2009

3.41

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 Chicago-Naperville-Joliet, IL-IN-WI metro area was 3.41.

So, a business with cash flows of $110,000 might list for $375,595. That's only if the firm complies with the local average. The actual distribution on cash flow multiples for a given set of businesses can be quite wide-ranging.

If you are interested in what cash flows are for a business in Joliet, BizBuySell.com reports that the median cash flow for Joliet area businesses was $92,694 in Q3 2009. In Q3 2008, Joliet cash flow multiples averaged 3.42 and the median cash flow was $101,344.

Number of Joliet Businesses for Sale in the Dataset

The study data comprised 535 listings in the Chicago-Naperville-Joliet, IL-IN-WI metro area. As such, some of the businesses used to derive the median valuation might be outside of Joliet, but they are in the area and so are probably representative of Joliet business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for Joliet spanned 651 listings. The downward trend in the number of Joliet business-for-sale listings is indicative of the current down economy.

Can I Sell My Joliet, IL Business Now?

It is a good time to sell a business. The market is turning and strategic buyers are very active. Many strategic buyers are flush with cash and see a great opportunity to grow market share and top-line revenues. For a selling SMB business owner, there is plenty of opportunity to cash out at a premium price. This advice on selling a business comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Joliet, IL Businesses

If you are contemplating buying a business or selling a business and would like to appraise the value of a specific business, 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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