September 18, 2020  
 
  Articles for Entrepreneurs  
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Q3 2009 Business Valuation Data

 

 

Sell My Louisville, KY Business

Every quarter, BizBuySell.com publishes business valuation data, and we now have their latest Louisville, Kentucky business-for-sale statistics.

Median Ask Prices for Louisville, KY Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses for sale in the Louisville-Jefferson County, KY-IN metro area for the last 11 quarters.

Quarter

Median Ask

Q1 2007

$225,000

Q2 2007

$225,000

Q3 2007

$275,000

Q4 2007

$249,500

Q1 2008

$250,000

Q2 2008

$232,500

Q3 2008

$240,000

Q4 2008

$225,000

Q1 2009

$232,500

Q2 2009

$249,750

Q3 2009

$249,250

As you can see from the chart above, Louisville 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 Louisville has risen year over year, we can conclude that many smaller firms in Louisville are holding off on selling.

Revenue Multiples for Louisville, KY Businesses

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

Quarter

Revenue Multiple

Q1 2007

0.77

Q2 2007

0.73

Q3 2007

0.94

Q4 2007

0.88

Q1 2008

0.83

Q2 2008

0.89

Q3 2008

0.84

Q4 2008

0.83

Q1 2009

0.88

Q2 2009

0.82

Q3 2009

0.87

In the Louisville-Jefferson County, KY-IN metro area, companies will usually sell for 0.87 times the selling company's revenues. As shown in the chart above, that 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. Keep in mind that this is strictly an average for revenue multiples in the area. Some businesses will have higher revenue multiples and others will have lower revenue multiples.

According to BizBuySell.com, the median revenues for its Louisville business-for-sale listings was $405,000 in Q3 2009.

In terms of trending year over year, the Q3 2008 revenue multiple was 0.84 and the median revenue for listed Louisville businesses was $380,000.

Cash Flow Multiples for Louisville, KY Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

3.45

Q2 2007

3.94

Q3 2007

4.50

Q4 2007

4.40

Q1 2008

4.24

Q2 2008

4.37

Q3 2008

4.17

Q4 2008

3.97

Q1 2009

4.14

Q2 2009

4.09

Q3 2009

4.40

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 Louisville-Jefferson County, KY-IN metro area was 4.40.

So, a firm 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.

If you are interested in what cash flows are for a business in Louisville, BizBuySell.com reports that the median cash flow for Louisville area businesses was $79,700 in Q3 2009. In Q3 2008, Louisville cash flow multiples averaged 4.17 and the median cash flow was $75,000.

Number of Louisville 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 Louisville, but they are in the area and so are likely representative of Louisville business valuations.

In Q3 2008, just one year ago, there were 89 Louisville listings in the BizBuySell.com dataset. As a result of the recession, fewer Louisville business owners are selling because they hope to weather the storm and sell after the economy turns around.

Can I Sell My Louisville, KY 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 Louisville, KY Businesses

If you are thinking about buying a business or selling a business and would like to determine how much a business is worth, 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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