September 19, 2020  
 
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Q3 2009 Business Valuation Data

 

 

Sell My Nashville, TN Business

BizBuySell.com has just released its Nashville, Tennessee small business valuation trend data for Third Quarter 2009.

Median Ask Prices for Nashville, TN Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Nashville-Davidson--Murfreesboro, TN metro area for the last 11 quarters.

Quarter

Median Ask

Q1 2007

$280,000

Q2 2007

$275,000

Q3 2007

$290,000

Q4 2007

$299,000

Q1 2008

$280,000

Q2 2008

$299,950

Q3 2008

$322,500

Q4 2008

$315,000

Q1 2009

$330,000

Q2 2009

$350,000

Q3 2009

$355,000

As you can see from the chart above, Nashville business-for-sale listings in Q3 2009 had a median asking price of $355,000.

That compares to a median ask price of $322,500 in Q3 2008. Because the median ask price for businesses for sale in Nashville has risen year over year, we can conclude that many smaller firms in Nashville are holding off on selling.

Revenue Multiples for Nashville, TN Businesses

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

Quarter

Revenue Multiple

Q1 2007

1.41

Q2 2007

1.08

Q3 2007

1.09

Q4 2007

1.10

Q1 2008

1.00

Q2 2008

0.95

Q3 2008

0.94

Q4 2008

0.92

Q1 2009

0.93

Q2 2009

1.01

Q3 2009

0.95

In the Nashville-Davidson--Murfreesboro, TN metro area, small companies will typically sell for 0.95 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 business that has revenues of $150,000 might list for $142,715. Remember, however, that this is in fact an average for revenue multiples in Nashville and surrounding communities. Some businesses will have higher revenue multiples and others will have lower revenue multiples.

According to BizBuySell.com, the median revenues for its Nashville business-for-sale listings was $444,445 in Q3 2009.

As a reference point, the Q3 2008 revenue multiple was 0.94 and the median revenue for listed Nashville businesses was $500,000.

Cash Flow Multiples for Nashville, TN Businesses

Here is how cash flow multiples are trending in the Nashville area, based on BizBuySell.com's quarterly reports.

Quarter

Median Cash
Flow Multiple

Q1 2007

4.33

Q2 2007

4.08

Q3 2007

4.07

Q4 2007

4.30

Q1 2008

4.25

Q2 2008

4.05

Q3 2008

4.00

Q4 2008

3.96

Q1 2009

3.96

Q2 2009

4.03

Q3 2009

3.90

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 Nashville-Davidson--Murfreesboro, TN metro area was 3.90.

So, a business with cash flows of $110,000 might list for $428,706. That's only if the firm complies with the local average. Most businesses will not conform to industry- or area averages.

If you are interested in what cash flows are for a business in Nashville, BizBuySell.com determined that the median cash flow for Nashville area businesses was $113,902 in Q3 2009. In Q3 2008, Nashville cash flow multiples averaged 4.00 and the median cash flow was $111,056.

Number of Nashville Businesses for Sale in the Dataset

The study data comprised 214 listings in the Nashville-Davidson--Murfreesboro, TN metro area. As such, some of the businesses used to derive the median valuation might be outside of Nashville, but they are close by and so are probably representative of Nashville business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for Nashville spanned 240 listings. The downward trend in the number of Nashville business-for-sale listings is indicative of the current down economy.

Can I Sell My Nashville, TN 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 Nashville, TN Businesses

If you are contemplating buying a business or selling a business and would like to determine how much a business is worth, 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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