September 19, 2020  
 
  Articles for Entrepreneurs  
Gaebler.com is a daily online magazine covering small business news. We help entrepreneurs transform ideas and innovations into greatness.

Q3 2009 Business Valuation Data

 

 

Sell My Mesa, AZ Business

We just received the latest Mesa, Arizona business valuation data for Third Quarter 2009.

Median Ask Prices for Mesa, AZ Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Phoenix-Mesa-Scottsdale, AZ metro area for the last 11 quarters.

Quarter

Median Ask

Q1 2007

$200,000

Q2 2007

$195,000

Q3 2007

$225,000

Q4 2007

$219,000

Q1 2008

$220,000

Q2 2008

$225,000

Q3 2008

$210,000

Q4 2008

$200,000

Q1 2009

$210,000

Q2 2009

$190,000

Q3 2009

$190,000

As you can see from the chart above, Mesa business-for-sale listings in Q3 2009 had a median asking price of $190,000.

That compares to a median ask price of $210,000 in Q3 2008. The lower median asking price in last quarter suggests that Mesa, AZ 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 Mesa, AZ Businesses

Here is how median revenue multiples are changing in the Mesa area, based on BizBuySell.com's data.

Quarter

Revenue Multiple

Q1 2007

0.88

Q2 2007

0.84

Q3 2007

0.92

Q4 2007

0.90

Q1 2008

0.88

Q2 2008

0.88

Q3 2008

0.91

Q4 2008

0.88

Q1 2009

0.89

Q2 2009

0.84

Q3 2009

0.85

In the Phoenix-Mesa-Scottsdale, AZ metro area, small businesses will typically sell for 0.85 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 $127,775. Remember, however, that this is only 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 Mesa business-for-sale listings was $300,000 in Q3 2009.

To give this some context, the Q3 2008 revenue multiple was 0.91 and the median revenue for listed Mesa businesses was $332,897.

Cash Flow Multiples for Mesa, AZ Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

3.20

Q2 2007

3.10

Q3 2007

3.30

Q4 2007

3.21

Q1 2008

3.27

Q2 2008

3.26

Q3 2008

3.26

Q4 2008

3.19

Q1 2009

3.27

Q2 2009

3.10

Q3 2009

3.11

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 Phoenix-Mesa-Scottsdale, AZ metro area was 3.11.

So, a business with cash flows of $110,000 might list for $341,598. 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.

In case you were wondering what typical cash flows are for a business in Mesa, BizBuySell.com reports that the median cash flow for Mesa area businesses was $75,000 in Q3 2009. In Q3 2008, Mesa cash flow multiples averaged 3.26 and the median cash flow was $82,425.

Number of Mesa Businesses for Sale in the Dataset

The study data comprised 1181 listings in the Phoenix-Mesa-Scottsdale, AZ metro area. As such, some of the businesses used to derive the median valuation might be outside of Mesa, but they are close by and so are probably representative of Mesa business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for Mesa spanned 1517 listings. The downward trend in the number of Mesa business-for-sale listings is indicative of the current down economy.

Should I Sell My Mesa, AZ Business Now?

While the economy can play a role in deciding whether to sell a business or not, it is only one of many factors. Indications suggest that the economy is turning around, so it's probaby a good time to consider selling right now. Beyond that, though, you have to look at your specific case. Will there be substantial demand for your business? Will you be able to get a good price when selling your company? If not, think about what factors you can control that can make your business more attractive to prospective buyers, and then work diligently to improve your business attractiveness and raise your business valuation. This helpful advice was provided by Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Mesa, AZ 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 additional information.

 

 

 

Additional Resources for Entrepreneurs

Administrative Professionals / Office Managers

Family Business Advice

Good Businesses to Start

Start an Energy Business

Start a Hedge Fund

Payroll Service Information

Productivity Tips

Bad Economy Advice

Small Business Websites

Search Engine Optimization

Online Reputation