September 19, 2020  
 
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Q3 2009 Business Valuation Data

 

 

Sell My New Orleans, LA Business

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

Median Ask Prices for New Orleans, LA Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses for sale in the New Orleans-Metairie-Kenner, LA metro area for the last 11 quarters.

Quarter

Median Ask

Q1 2007

$522,500

Q2 2007

$267,500

Q3 2007

$242,500

Q4 2007

$205,000

Q1 2008

$225,000

Q2 2008

$235,000

Q3 2008

$245,000

Q4 2008

$250,000

Q1 2009

$225,000

Q2 2009

$250,000

Q3 2009

$225,000

As you can see from the chart above, New Orleans business-for-sale listings in Q3 2009 had a median asking price of $225,000.

That compares to a median ask price of $245,000 in Q3 2008. The lower median asking price in last quarter suggests that New Orleans, LA sellers are dropping their asking prices in light of market conditions. This is making it possible for more business-for-sale transactions to close.

Revenue Multiples for New Orleans, LA Businesses

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

Quarter

Revenue Multiple

Q1 2007

0.73

Q2 2007

0.88

Q3 2007

1.01

Q4 2007

0.86

Q1 2008

0.87

Q2 2008

0.99

Q3 2008

1.01

Q4 2008

1.07

Q1 2009

1.04

Q2 2009

1.04

Q3 2009

1.09

In the New Orleans-Metairie-Kenner, LA metro area, small companies will usually sell for 1.09 times the selling company's revenues. The data from BizBuySell.com indicates that is the mean revenue multiple for Q3 2009 in this part of the country.

In other words, a firm with revenues of $150,000 might list for $163,323. Remember, however, that this is just an average for revenue multiples in New Orleans and surrounding communities. Some firms will have higher revenue multiples and others will have lower revenue multiples.

According to BizBuySell.com, the median revenues for its New Orleans business-for-sale listings was $316,500 in Q3 2009.

As a reference point, the Q3 2008 revenue multiple was 1.01 and the median revenue for listed New Orleans businesses was $378,000.

Cash Flow Multiples for New Orleans, LA Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

3.31

Q2 2007

3.33

Q3 2007

4.11

Q4 2007

3.83

Q1 2008

3.66

Q2 2008

3.72

Q3 2008

3.83

Q4 2008

3.71

Q1 2009

3.69

Q2 2009

4.00

Q3 2009

3.86

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 New Orleans-Metairie-Kenner, LA metro area was 3.86.

So, a business with cash flows of $110,000 might list for $424,450. That calculation is dependent on the business selling for the area's average multiple. Most businesses will not conform to industry- or area averages.

If you are interested in what cash flows are for a business in New Orleans, BizBuySell.com reports that the median cash flow for New Orleans area businesses was $65,268 in Q3 2009. In Q3 2008, New Orleans cash flow multiples averaged 3.83 and the median cash flow was $75,737.

Number of New Orleans Businesses for Sale in the Dataset

The study data comprised 144 listings in the New Orleans-Metairie-Kenner, LA metro area. As such, some of the businesses used to derive the median valuation might be outside of New Orleans, but they are close by and so are probably representative of New Orleans business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for New Orleans spanned 85 listings. The downward trend in the number of New Orleans business-for-sale listings is indicative of the current down economy.

Should I Sell My New Orleans, LA 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 New Orleans, LA Businesses

If you are contemplating buying a business or selling a business and would like to appraise the value of a specific business, 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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