September 30, 2020  
 
  Articles for Entrepreneurs  
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Q3 2009 Business Valuation Data

 

 

Sell My Metairie, LA Business

We just received the latest Metairie, Louisiana business valuation data for Third Quarter 2009.

Median Ask Prices for Metairie, LA Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the New Orleans-Metairie-Kenner, LA metro area for the last 11 quarters.

Quarter

Median Ask

Q1 2007

$522,500

Q2 2007

$267,500

Q3 2007

$242,500

Q4 2007

$205,000

Q1 2008

$225,000

Q2 2008

$235,000

Q3 2008

$245,000

Q4 2008

$250,000

Q1 2009

$225,000

Q2 2009

$250,000

Q3 2009

$225,000

As you can see from the chart above, Metairie 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 Metairie, LA median business asking prices appear to be dropping, it suggests that selling Metairie businesses may be lowering their prices to make their businesses more attractive to buyers.

Revenue Multiples for Metairie, LA Businesses

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

Quarter

Revenue Multiple

Q1 2007

0.73

Q2 2007

0.88

Q3 2007

1.01

Q4 2007

0.86

Q1 2008

0.87

Q2 2008

0.99

Q3 2008

1.01

Q4 2008

1.07

Q1 2009

1.04

Q2 2009

1.04

Q3 2009

1.09

In the New Orleans-Metairie-Kenner, LA metro area, small companies will typically sell for 1.09 times the selling company's revenues. As shown in the chart above, that was the mean revenue multiple for Q3 2009 in this part of the country.

In other words, a firm with revenues of $150,000 might list for $163,323. Remember, however, that this is just an average for revenue multiples in the area. Some small businesses will have higher revenue multiples and others will have lower revenue multiples.

According to BizBuySell.com, the median revenues for its Metairie 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 Metairie businesses was $378,000.

Cash Flow Multiples for Metairie, LA Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

3.31

Q2 2007

3.33

Q3 2007

4.11

Q4 2007

3.83

Q1 2008

3.66

Q2 2008

3.72

Q3 2008

3.83

Q4 2008

3.71

Q1 2009

3.69

Q2 2009

4.00

Q3 2009

3.86

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 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 calculation is dependent on the business selling for the area's average multiple. Most businesses will not conform to industry- or area averages.

In case you were wondering what typical cash flows are for a business in Metairie, BizBuySell.com reports that the median cash flow for Metairie area businesses was $65,268 in Q3 2009. In Q3 2008, Metairie cash flow multiples averaged 3.83 and the median cash flow was $75,737.

Number of Metairie Businesses for Sale in the Dataset

The study data comprised 144 listings in the New Orleans-Metairie-Kenner, LA metro area. Many of the businesses in the dataset are outside of Metairie, but they are nearby and so are probably representative of Metairie business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for Metairie spanned 85 listings. The downward trend in the number of Metairie business-for-sale listings is indicative of the current down economy.

Can I Sell My Metairie, LA Business Now?

The market is turning around and it's a great time to sell. Still, you may have to be creative. For example, with credit still relatively tight, you might want to consider offing seller financing to a buyer. This will improve your odds of closing a business-for-sale transaction. This helpful tip comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Metairie, LA Businesses

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

 

 

 

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