September 18, 2020  
 
  Articles for Entrepreneurs  
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Q3 2009 Business Valuation Data

 

 

Sell My Milwaukee, WI Business

We just received the latest Milwaukee, Wisconsin business valuation data for Third Quarter 2009.

Median Ask Prices for Milwaukee, WI Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Milwaukee-Waukesha-West Allis, WI metro area for the last 11 quarters.

Quarter

Median Ask

Q1 2007

$362,500

Q2 2007

$220,000

Q3 2007

$332,500

Q4 2007

$335,000

Q1 2008

$392,500

Q2 2008

$395,000

Q3 2008

$374,950

Q4 2008

$367,450

Q1 2009

$300,000

Q2 2009

$330,000

Q3 2009

$275,000

As you can see from the chart above, Milwaukee business-for-sale listings in Q3 2009 had a median asking price of $275,000.

That compares to a median ask price of $374,950 in Q3 2008. Given that Milwaukee, WI median business asking prices appear to be dropping, it suggests that selling Milwaukee businesses may be lowering their prices to make their businesses more attractive to buyers.

Revenue Multiples for Milwaukee, WI Businesses

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

Quarter

Revenue Multiple

Q1 2007

1.01

Q2 2007

1.02

Q3 2007

1.13

Q4 2007

0.97

Q1 2008

1.04

Q2 2008

1.11

Q3 2008

1.04

Q4 2008

1.02

Q1 2009

1.04

Q2 2009

1.00

Q3 2009

0.99

In the Milwaukee-Waukesha-West Allis, WI metro area, small companies will typically sell for 0.99 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 $147,792. Remember, however, that this is just an average for revenue multiples in the area. Some businesses will have higher revenue multiples and others will have lower revenue multiples.

According to BizBuySell.com, the median revenues for its Milwaukee business-for-sale listings was $425,000 in Q3 2009.

To give this some context, the Q3 2008 revenue multiple was 1.04 and the median revenue for listed Milwaukee businesses was $511,597.

Cash Flow Multiples for Milwaukee, WI Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

3.92

Q2 2007

3.65

Q3 2007

3.77

Q4 2007

3.56

Q1 2008

3.74

Q2 2008

4.12

Q3 2008

4.32

Q4 2008

4.42

Q1 2009

4.49

Q2 2009

4.28

Q3 2009

4.28

As you probably know, cash flow multiples are another useful method to value a business.

For Q3 2009, the average cash flow multiple for listed businesses in the Milwaukee-Waukesha-West Allis, WI metro area was 4.28.

So, a business with cash flows of $110,000 might list for $471,170. 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 Milwaukee, BizBuySell.com reports that the median cash flow for Milwaukee area businesses was $75,482 in Q3 2009. In Q3 2008, Milwaukee cash flow multiples averaged 4.32 and the median cash flow was $102,572.

Number of Milwaukee Businesses for Sale in the Dataset

The study data comprised 91 listings in the Milwaukee-Waukesha-West Allis, WI metro area. As such, some of the businesses used to derive the median valuation might be outside of Milwaukee, but they are in the area and so are likely representative of Milwaukee business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for Milwaukee spanned 96 listings. The downward trend in the number of Milwaukee business-for-sale listings is indicative of the current down economy.

Can I Sell My Milwaukee, WI 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 Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Milwaukee, WI 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 more information.

 

 

 

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