September 25, 2020  
 
  Articles for Entrepreneurs  
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Q3 2009 Business Valuation Data

 

 

Sell My Miami, FL Business

We just received the latest Miami, Florida business valuation data for Third Quarter 2009.

Median Ask Prices for Miami, FL Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for companies in the Miami-Fort Lauderdale-Miami Beach, FL metro area for the last 11 quarters.

Quarter

Median Ask

Q1 2007

$249,500

Q2 2007

$280,000

Q3 2007

$300,000

Q4 2007

$300,000

Q1 2008

$299,000

Q2 2008

$295,000

Q3 2008

$295,000

Q4 2008

$275,000

Q1 2009

$265,000

Q2 2009

$260,000

Q3 2009

$250,000

As shown in the table, Miami 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. Given that Miami, FL median business asking prices appear to be dropping, it suggests that selling Miami businesses may be lowering their prices to make their businesses more attractive to buyers.

Revenue Multiples for Miami, FL Businesses

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

Quarter

Revenue Multiple

Q1 2007

1.08

Q2 2007

1.16

Q3 2007

1.08

Q4 2007

1.03

Q1 2008

0.98

Q2 2008

0.98

Q3 2008

1.03

Q4 2008

0.87

Q1 2009

0.89

Q2 2009

0.90

Q3 2009

0.90

In the Miami-Fort Lauderdale-Miami Beach, FL metro area, businesses will typically sell for 0.90 times the selling company's revenues. The data from BizBuySell.com indicates that is the mean revenue multiple for Q3 2009 in this part of the country.

In other words, a business that has revenues of $150,000 might list for $134,525. Remember, however, that this is simply an average for revenue multiples in Miami and surrounding communities. Some small businesses will have higher revenue multiples and others will have lower revenue multiples.

According to BizBuySell.com, the median revenues for its Miami business-for-sale listings was $403,492 in Q3 2009.

As a reference point, the Q3 2008 revenue multiple was 1.03 and the median revenue for listed Miami businesses was $448,418.

Cash Flow Multiples for Miami, FL Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

3.12

Q2 2007

3.37

Q3 2007

3.43

Q4 2007

3.38

Q1 2008

3.38

Q2 2008

3.32

Q3 2008

3.38

Q4 2008

3.16

Q1 2009

3.22

Q2 2009

3.20

Q3 2009

3.12

As you probably know, cash flow multiples are another popular technique to value a business.

For Q3 2009, the average cash flow multiple for businesses listed 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 calculation is dependent on the business selling for the area's average multiple. Most businesses will not conform to industry- or area averages.

If you are interested in what cash flows are for a business in Miami, BizBuySell.com reports that the median cash flow for Miami area businesses was $106,030 in Q3 2009. In Q3 2008, Miami cash flow multiples averaged 3.38 and the median cash flow was $112,752.

Number of Miami 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, but they are nearby and so are probably representative of Miami business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for Miami spanned 2264 listings. The downward trend in the number of Miami business-for-sale listings is indicative of the current down economy.

Can I Sell My Miami, FL 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 Miami, FL 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 additional information.

 

 

 

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