Q3 2009 Business Valuation Data
Sell My Milford, CT Business
Every quarter, BizBuySell.com publishes business valuation data, and we now have their latest Milford, Connecticut business-for-sale statistics.
Median Ask Prices for Milford, CT Businesses
If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the New Haven-Milford, CT metro area for the last 11 quarters.
As you can see from the chart above, Milford business-for-sale listings in Q3 2009 had a median asking price of $159,000.
That compares to a median ask price of $175,000 in Q3 2008. Given that Milford, CT median business asking prices appear to be dropping, it suggests that selling Milford businesses may be lowering their prices to make their businesses more attractive to buyers.
Revenue Multiples for Milford, CT Businesses
Here is how median revenue multiples are changing in the Milford area, based on BizBuySell.com's quarterly reports.
In the New Haven-Milford, CT metro area, small companies will usually sell for 0.63 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 firm with revenues of $150,000 might list for $94,828. Remember, however, that this is in fact an average for revenue multiples in Milford and surrounding communities. Some companies will have higher revenue multiples and others will have lower revenue multiples.
According to BizBuySell.com, the median revenues for its Milford business-for-sale listings was $330,000 in Q3 2009.
To put this in perspective, the Q3 2008 revenue multiple was 0.71 and the median revenue for listed Milford businesses was $300,000.
Cash Flow Multiples for Milford, CT Businesses
The table below shows how cash flow multiples are trending in the Milford area, based on BizBuySell.com's quarterly reports.
Flow Multiple
As you probably know, cash flow multiples are another common way to value a business.
For Q3 2009, the average cash flow multiple for businesses listed in the New Haven-Milford, CT metro area was 2.71.
So, a business with cash flows of $110,000 might list for $298,138. 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 Milford, BizBuySell.com reports that the median cash flow for Milford area businesses was $93,000 in Q3 2009. In Q3 2008, Milford cash flow multiples averaged 2.77 and the median cash flow was $77,000.
Number of Milford Businesses for Sale in the Dataset
The study data comprised 151 listings in the New Haven-Milford, CT metro area. As such, some of the businesses used to derive the median valuation might be outside of Milford, but they are in the area and so are probably representative of Milford business valuations.
One year ago, in Q3 2008, the BizBuySell.com dataset for Milford spanned 130 listings. In a market where you would think fewer business owners would be selling it's a bit surprising to see more Milford business-for-sale listings.
Can I Sell My Milford, CT Business Now?
Selling a business now is the right decision for many business owners. That's because it's a great time to sell given the sheer number of buyers in the marketplace right now. Laid-off executives, for example, our turning to entrepreneurship and are actively exploring business-for-sale opportunities. If your business has solid fundamentals and you have a good plan, your next step should be to talk to a professional intermediary who can help you to package up the business for sale and get maximize your business sale price. This helpful tip comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.
Business Valuations for Milford, CT 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 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 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.
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