September 26, 2020  
 
  Articles for Entrepreneurs  
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Q3 2009 Business Valuation Data

 

 

Sell My Middletown, OH Business

We just received the latest Middletown, Ohio business valuation data for Third Quarter 2009.

Median Ask Prices for Middletown, OH Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for companies in the Cincinnati-Middletown, OH-KY-IN metro area for the last 11 quarters.

Quarter

Median Ask

Q1 2007

$277,000

Q2 2007

$200,000

Q3 2007

$204,500

Q4 2007

$200,000

Q1 2008

$225,000

Q2 2008

$237,000

Q3 2008

$249,500

Q4 2008

$210,000

Q1 2009

$272,000

Q2 2009

$254,950

Q3 2009

$275,000

As shown in the table, Middletown business-for-sale listings in Q3 2009 had a median asking price of $275,000.

That compares to a median ask price of $249,500 in Q3 2008. Because the median ask price for businesses for sale in Middletown has risen year over year, we can conclude that many smaller firms in Middletown are holding off on selling.

Revenue Multiples for Middletown, OH Businesses

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

Quarter

Revenue Multiple

Q1 2007

0.71

Q2 2007

0.90

Q3 2007

0.92

Q4 2007

0.93

Q1 2008

0.75

Q2 2008

0.76

Q3 2008

0.74

Q4 2008

0.71

Q1 2009

0.81

Q2 2009

0.73

Q3 2009

0.78

In the Cincinnati-Middletown, OH-KY-IN metro area, companies will typically sell for 0.78 times the selling company's revenues. As shown in the chart above, that was the mean revenue multiple for Q3 2009 in this area of the country.

In other words, a firm with revenues of $150,000 might list for $116,495. Remember, however, that this is strictly an average for revenue multiples in the area. Some entities will have higher revenue multiples and others will have lower revenue multiples.

According to BizBuySell.com, the median revenues for its Middletown business-for-sale listings was $477,000 in Q3 2009.

To put this in perspective, the Q3 2008 revenue multiple was 0.74 and the median revenue for listed Middletown businesses was $427,500.

Cash Flow Multiples for Middletown, OH Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

3.59

Q2 2007

3.66

Q3 2007

3.68

Q4 2007

3.96

Q1 2008

3.70

Q2 2008

3.80

Q3 2008

3.76

Q4 2008

3.81

Q1 2009

4.18

Q2 2009

3.89

Q3 2009

3.87

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 Cincinnati-Middletown, OH-KY-IN metro area was 3.87.

So, a company with cash flows of $110,000 might list for $425,437. That's only if the firm complies with the local average. Cash flow multiples will usually vary considerably based on many factors.

If you are interested in what cash flows are for a business in Middletown, BizBuySell.com found that the median cash flow for Middletown area businesses was $93,000 in Q3 2009. In Q3 2008, Middletown cash flow multiples averaged 3.76 and the median cash flow was $80,000.

Number of Middletown Businesses for Sale in the Dataset

The study data comprised 105 listings in the Cincinnati-Middletown, OH-KY-IN metro area. As such, some of the businesses used to derive the median valuation might be outside of Middletown, but they are in the area and so are probably representative of Middletown business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for Middletown spanned 118 listings. The downward trend in the number of Middletown business-for-sale listings is indicative of the current down economy.

Can I Sell My Middletown, OH Business Now?

As long as you maintain confidentiality while selling a business, there's little harm in putting a business up for sale. Sure, it takes a lot of work, but investing in getting ready to sell now will have a payoff whenever you decide to actually sell. By simply listing a business for sale, and doing it now, you can get a feel for the market. Remember, you can always say no thanks to an offer you don't like. This helpful tip on buying a business comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Middletown, OH Businesses

If you are thinking about 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 more information.

 

 

 

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