Q3 2009 Business Valuation Data
Sell My Miami Beach, FL Business
Every quarter, BizBuySell.com publishes business valuation data, and we now have their latest Miami Beach, Florida statistics on business valuations for Third Quarter 2009.
Median Ask Prices for Miami Beach, FL Businesses
If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Miami-Fort Lauderdale-Miami Beach, FL metro area for the last 11 quarters.
As you can see from the chart above, Miami Beach business-for-sale listings in Q3 2009 had a median asking price of $250,000.
That compares to a median ask price of $295,000 in Q3 2008. The lower median asking price in last quarter suggests that Miami Beach, FL 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 Miami Beach, FL Businesses
Here is how median revenue multiples are trending in the Miami Beach area, based on BizBuySell.com's quarterly reports.
In the Miami-Fort Lauderdale-Miami Beach, FL metro area, small companies will typically sell for 0.90 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 $134,525. Remember, however, that this is just an average for revenue multiples in Miami Beach 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 Miami Beach business-for-sale listings was $403,492 in Q3 2009.
To put this in perspective, the Q3 2008 revenue multiple was 1.03 and the median revenue for listed Miami Beach businesses was $448,418.
Cash Flow Multiples for Miami Beach, FL Businesses
The table below shows how cash flow multiples are trending in the Miami Beach area, based on BizBuySell.com's quarterly reports.
As you probably know, cash flow multiples are another popular technique to value a business.
For Q3 2009, the average cash flow multiple for listed businesses in the Miami-Fort Lauderdale-Miami Beach, FL metro area was 3.12.
So, a business with cash flows of $110,000 might list for $342,656. 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 Miami Beach, BizBuySell.com reports that the median cash flow for Miami Beach area businesses was $106,030 in Q3 2009. In Q3 2008, Miami Beach cash flow multiples averaged 3.38 and the median cash flow was $112,752.
Number of Miami Beach Businesses for Sale in the Dataset
The study data comprised 1751 listings in the Miami-Fort Lauderdale-Miami Beach, FL metro area. As such, some of the businesses used to derive the median valuation might be outside of Miami Beach, but they are in the area and so are probably representative of Miami Beach business valuations.
One year ago, in Q3 2008, the BizBuySell.com dataset for Miami Beach spanned 2264 listings. The downward trend in the number of Miami Beach business-for-sale listings is indicative of the current down economy.
Can I Sell My Miami Beach, FL 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 Miami Beach, FL Businesses
If you are contemplating buying a business or selling a business and would like to get an estimated company valuation, 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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