September 29, 2020  
 
  Articles for Entrepreneurs  
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Q3 2009 Business Valuation Data

 

 

Sell My New Haven, CT Business

We just received the latest New Haven, Connecticut small business valuation trend data for Third Quarter 2009.

Median Ask Prices for New Haven, 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.

Quarter

Median Ask

Q1 2007

$189,000

Q2 2007

$189,000

Q3 2007

$175,000

Q4 2007

$179,000

Q1 2008

$183,900

Q2 2008

$181,900

Q3 2008

$175,000

Q4 2008

$175,000

Q1 2009

$195,000

Q2 2009

$195,000

Q3 2009

$159,000

As you can see from the chart above, New Haven 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 New Haven, CT median business asking prices appear to be dropping, it suggests that selling New Haven businesses may be lowering their prices to make their businesses more attractive to buyers.

Revenue Multiples for New Haven, CT Businesses

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

Quarter

Revenue Multiple

Q1 2007

0.74

Q2 2007

0.80

Q3 2007

0.73

Q4 2007

0.76

Q1 2008

0.76

Q2 2008

0.73

Q3 2008

0.71

Q4 2008

0.70

Q1 2009

0.64

Q2 2009

0.66

Q3 2009

0.63

In the New Haven-Milford, CT metro area, small companies will typically sell for 0.63 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 $94,828. Keep in mind that this is in fact an average for revenue multiples in the area. Some companies will have higher revenue multiples and others will have lower revenue multiples.

According to BizBuySell.com, the median revenues for its New Haven business-for-sale listings was $330,000 in Q3 2009.

In terms of trending year over year, the Q3 2008 revenue multiple was 0.71 and the median revenue for listed New Haven businesses was $300,000.

Cash Flow Multiples for New Haven, CT Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

3.11

Q2 2007

2.99

Q3 2007

3.03

Q4 2007

3.01

Q1 2008

3.04

Q2 2008

2.85

Q3 2008

2.77

Q4 2008

2.84

Q1 2009

2.94

Q2 2009

2.88

Q3 2009

2.71

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 New Haven-Milford, CT metro area was 2.71.

So, a firm with cash flows of $110,000 might list for $298,138. That's only if the firm complies with the local average. Actual cash flow multiples are based on business specifics.

If you are interested in what cash flows are for a business in New Haven, BizBuySell.com found that the median cash flow for New Haven area businesses was $93,000 in Q3 2009. In Q3 2008, New Haven cash flow multiples averaged 2.77 and the median cash flow was $77,000.

Number of New Haven Businesses for Sale in the Dataset

The study data comprised 151 listings in the New Haven-Milford, CT metro area. Many of the businesses in the dataset are outside of New Haven, but they are in the area and so are probably representative of New Haven business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for New Haven spanned 130 listings. In a market where you would think fewer business owners would be selling, it's a bit surprising to see more New Haven business-for-sale listings.

Can I Sell My New Haven, CT Business Now?

If you are trying to decide if this is a good time to sell a business, hire a third-party business appraisal firm to determine a business valuation for the company. This exercise should give you much better insights on whether it's a good time to sell or not. A consultation with a qualified business broker will also be very helpful to you. This useful business selling advice comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for New Haven, CT 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 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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