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

 

 

Sell My Kansas City, MO Business

We just received the latest Kansas City, Missouri business-for-sale statistics.

Median Ask Prices for Kansas City, MO Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Kansas City, MO-KS metro area for the last 11 quarters.

Quarter

Median Ask

Q1 2007

$315,000

Q2 2007

$198,500

Q3 2007

$215,000

Q4 2007

$244,000

Q1 2008

$225,000

Q2 2008

$295,000

Q3 2008

$225,000

Q4 2008

$195,000

Q1 2009

$195,000

Q2 2009

$232,000

Q3 2009

$250,000

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

That compares to a median ask price of $225,000 in Q3 2008. Because the median ask price for businesses for sale in Kansas City has risen year over year, we can conclude that many smaller firms in Kansas City are holding off on selling.

Revenue Multiples for Kansas City, MO Businesses

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

Quarter

Revenue Multiple

Q1 2007

0.84

Q2 2007

0.64

Q3 2007

0.78

Q4 2007

0.72

Q1 2008

0.72

Q2 2008

0.74

Q3 2008

0.75

Q4 2008

0.73

Q1 2009

0.75

Q2 2009

0.73

Q3 2009

0.78

In the Kansas City, MO-KS metro area, small businesses will typically sell for 0.78 times the selling company's revenues. As shown in the chart above, that 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 $116,788. Remember, however, that this is strictly 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 Kansas City business-for-sale listings was $409,843 in Q3 2009.

To put this in perspective, the Q3 2008 revenue multiple was 0.75 and the median revenue for listed Kansas City businesses was $420,000.

Cash Flow Multiples for Kansas City, MO Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

3.45

Q2 2007

3.18

Q3 2007

3.28

Q4 2007

3.32

Q1 2008

3.34

Q2 2008

3.39

Q3 2008

3.19

Q4 2008

2.80

Q1 2009

2.87

Q2 2009

2.96

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 Kansas City, MO-KS metro area was 3.06.

So, a firm with cash flows of $110,000 might list for $336,337. That's only if the firm complies with the local average. In practice, cash flow multiples can vary considerably from one business type to another.

If you are interested in what cash flows are for a business in Kansas City, BizBuySell.com reports that the median cash flow for Kansas City area businesses was $100,000 in Q3 2009. In Q3 2008, Kansas City cash flow multiples averaged 3.19 and the median cash flow was $95,000.

Number of Kansas City Businesses for Sale in the Dataset

The study data comprised 133 listings in the Kansas City, MO-KS metro area. As such, some of the businesses used to derive the median valuation might be outside of Kansas City, but they are in the area and so are likely representative of Kansas City business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for Kansas City spanned 161 listings. The downward trend in the number of Kansas City business-for-sale listings is indicative of the current down economy.

Can I Sell My Kansas City, MO Business Now?

You should consider selling your business if you think a buyer will be willing to pay a price that you are happy with. The economy should not be the major determining factor. In fact, some countercyclical companies sell for more in a down economy than they do in an up economy. This tip for selling a business was provided by Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Kansas City, MO Businesses

If you are considering buying a business or selling a business and would like to determine how much a business is worth, 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 more information.

 

 

 

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