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

 

 

Sell My Minneapolis, MN Business

We just received the latest Minneapolis, Minnesota business valuation data for Third Quarter 2009.

Median Ask Prices for Minneapolis, MN Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Minneapolis-St. Paul-Bloomington, MN-WI metro area for the last 11 quarters.

Quarter

Median Ask

Q1 2007

$250,000

Q2 2007

$259,000

Q3 2007

$300,000

Q4 2007

$299,000

Q1 2008

$265,000

Q2 2008

$250,000

Q3 2008

$265,000

Q4 2008

$300,000

Q1 2009

$275,000

Q2 2009

$258,999

Q3 2009

$250,000

As you can see from the chart above, Minneapolis business-for-sale listings in Q3 2009 had a median asking price of $250,000.

That compares to a median ask price of $265,000 in Q3 2008. Given that Minneapolis, MN median business asking prices appear to be dropping, it suggests that selling Minneapolis businesses may be lowering their prices to make their businesses more attractive to buyers.

Revenue Multiples for Minneapolis, MN Businesses

Here is how median revenue multiples are trending in the Minneapolis area, based on BizBuySell.com's economic data.

Quarter

Revenue Multiple

Q1 2007

0.76

Q2 2007

0.88

Q3 2007

0.83

Q4 2007

0.87

Q1 2008

0.85

Q2 2008

0.88

Q3 2008

0.91

Q4 2008

0.91

Q1 2009

0.94

Q2 2009

0.86

Q3 2009

0.94

In the Minneapolis-St. Paul-Bloomington, MN-WI metro area, small companies will typically sell for 0.94 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 business that has revenues of $150,000 might list for $141,463. Remember, however, that this is only an average for revenue multiples in Minneapolis 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 Minneapolis business-for-sale listings was $369,846 in Q3 2009.

To put this in perspective, the Q3 2008 revenue multiple was 0.91 and the median revenue for listed Minneapolis businesses was $374,000.

Cash Flow Multiples for Minneapolis, MN Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

3.93

Q2 2007

3.76

Q3 2007

3.91

Q4 2007

4.02

Q1 2008

3.99

Q2 2008

4.20

Q3 2008

4.19

Q4 2008

4.37

Q1 2009

4.28

Q2 2009

4.10

Q3 2009

4.23

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 Minneapolis-St. Paul-Bloomington, MN-WI metro area was 4.23.

So, a business with cash flows of $110,000 might list for $464,974. 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 Minneapolis, BizBuySell.com reports that the median cash flow for Minneapolis area businesses was $75,000 in Q3 2009. In Q3 2008, Minneapolis cash flow multiples averaged 4.19 and the median cash flow was $78,688.

Number of Minneapolis Businesses for Sale in the Dataset

The study data comprised 312 listings in the Minneapolis-St. Paul-Bloomington, MN-WI metro area. Many of the businesses in the dataset are outside of Minneapolis, but they are nearby and so are probably representative of Minneapolis business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for Minneapolis spanned 307 listings. In a market where you would think fewer business owners would be selling, it's a bit surprising to see more Minneapolis business-for-sale listings.

Should I Sell My Minneapolis, MN 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 Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Minneapolis, MN Businesses

If you are considering 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 more information.

 

 

 

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