Q3 2009 Business Valuation Data
Sell My Kenner, LA Business
BizBuySell.com has just released its Kenner, Louisiana business valuation data for Third Quarter 2009.
Median Ask Prices for Kenner, LA Businesses
If you are interested in trends in business-for-sale asking prices, here are the median asking prices for companies in the New Orleans-Metairie-Kenner, LA metro area for the last 11 quarters.
As you can see from the chart above, Kenner business-for-sale listings in Q3 2009 had a median asking price of $225,000.
That compares to a median ask price of $245,000 in Q3 2008. Given that Kenner, LA median business asking prices appear to be dropping, it suggests that selling Kenner businesses may be lowering their prices to make their businesses more attractive to buyers.
Revenue Multiples for Kenner, LA Businesses
Here is how median revenue multiples are moving in the Kenner area, based on BizBuySell.com's quarterly reports.
In the New Orleans-Metairie-Kenner, LA metro area, small companies will usually sell for 1.09 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 $163,323. Keep in mind that this is just an average for revenue multiples in Kenner and surrounding communities. Some firms will have higher revenue multiples and others will have lower revenue multiples.
According to BizBuySell.com, the median revenues for its Kenner business-for-sale listings was $316,500 in Q3 2009.
As a reference point, the Q3 2008 revenue multiple was 1.01 and the median revenue for listed Kenner businesses was $378,000.
Cash Flow Multiples for Kenner, LA Businesses
The table below shows how cash flow multiples are trending in the Kenner area, based on BizBuySell.com's quarterly reports.
As you probably know, cash flow multiples are another useful method to value a business.
For Q3 2009, the average cash flow multiple for listed businesses in the New Orleans-Metairie-Kenner, LA metro area was 3.86.
So, a business with cash flows of $110,000 might list for $424,450. That's only if the firm complies with the local average. Cash flow multiples will usually vary considerably based on many factors.
If you are interested in what cash flows are for a business in Kenner, BizBuySell.com reports that the median cash flow for Kenner area businesses was $65,268 in Q3 2009. In Q3 2008, Kenner cash flow multiples averaged 3.83 and the median cash flow was $75,737.
Number of Kenner Businesses for Sale in the Dataset
The study data comprised 144 listings in the New Orleans-Metairie-Kenner, LA metro area. As such, some of the businesses used to derive the median valuation might be outside of Kenner, but they are nearby and so are probably representative of Kenner business valuations.
One year ago, in Q3 2008, the BizBuySell.com dataset for Kenner spanned 85 listings. The downward trend in the number of Kenner business-for-sale listings is indicative of the current down economy.
Can I Sell My Kenner, LA 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 Sun Acquisitions, a leading business brokerage firm.
Business Valuations for Kenner, LA Businesses
If you are contemplating buying a business or selling a business and would like to get an estimated company valuation, 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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