September 25, 2020  
 
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Q3 2009 Business Valuation Data

 

 

Sell My Las Vegas, NV Business

We just received the latest Las Vegas, Nevada business-for-sale statistics.

Median Ask Prices for Las Vegas, NV Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Las Vegas-Paradise, NV metro area for the last 11 quarters.

Quarter

Median Ask

Q1 2007

$299,500

Q2 2007

$249,900

Q3 2007

$250,000

Q4 2007

$250,000

Q1 2008

$225,000

Q2 2008

$243,750

Q3 2008

$225,000

Q4 2008

$216,000

Q1 2009

$207,500

Q2 2009

$233,000

Q3 2009

$249,500

As shown in the table, Las Vegas business-for-sale listings in Q3 2009 had a median asking price of $249,500.

That compares to a median ask price of $225,000 in Q3 2008. With median asking prices for Las Vegas, NV businesses for sale trending up, we can conclude that only businesses that know they can command a premium price are willing to sell in this tough market.

Revenue Multiples for Las Vegas, NV Businesses

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

Quarter

Revenue Multiple

Q1 2007

0.81

Q2 2007

0.82

Q3 2007

0.84

Q4 2007

0.85

Q1 2008

0.88

Q2 2008

0.86

Q3 2008

0.84

Q4 2008

0.83

Q1 2009

0.81

Q2 2009

0.84

Q3 2009

0.77

In the Las Vegas-Paradise, NV metro area, small companies will typically sell for 0.77 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 $115,572. Keep in mind that this is just an average for revenue multiples in Las Vegas and surrounding communities. Some entities will have higher revenue multiples and others will have lower revenue multiples.

According to BizBuySell.com, the median revenues for its Las Vegas business-for-sale listings was $404,522 in Q3 2009.

To put this in perspective, the Q3 2008 revenue multiple was 0.84 and the median revenue for listed Las Vegas businesses was $378,650.

Cash Flow Multiples for Las Vegas, NV Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

3.09

Q2 2007

2.91

Q3 2007

2.92

Q4 2007

3.01

Q1 2008

3.02

Q2 2008

3.05

Q3 2008

3.10

Q4 2008

3.20

Q1 2009

3.16

Q2 2009

3.22

Q3 2009

3.15

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 Las Vegas-Paradise, NV metro area was 3.15.

So, a business with cash flows of $110,000 might list for $346,455. That's only if the firm complies with the local average. Most businesses will not conform to industry- or area averages.

If you are interested in what cash flows are for a business in Las Vegas, BizBuySell.com reports that the median cash flow for Las Vegas area businesses was $102,395 in Q3 2009. In Q3 2008, Las Vegas cash flow multiples averaged 3.10 and the median cash flow was $101,042.

Number of Las Vegas Businesses for Sale in the Dataset

The study data comprised 318 listings in the Las Vegas-Paradise, NV metro area. As such, some of the businesses used to derive the median valuation might be outside of Las Vegas, but they are in the area and so are probably representative of Las Vegas business valuations.

In Q3 2008, just one year ago, there were 496 Las Vegas listings in the BizBuySell.com dataset. As a result of the recession, fewer Las Vegas business owners are selling because they hope to weather the storm and sell after the economy turns around.

Should I Sell My Las Vegas, NV Business Now?

If you are trying to decide if this is a good time to sell a business, hire a third-party business appraisal firm to determine a business valuation for the company. This exercise should give you much better insights on whether it's a good time to sell or not. A consultation with a qualified business broker will also be very helpful to you. This useful business selling advice comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Las Vegas, NV Businesses

If you are considering buying a business or selling a business and would like to look at completed transaction sale price comparables in the area, 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 published quarterly. If you find these trends interesting, take a moment to visit BizBuySell.com Insights Report for more information.

 

 

 

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