September 22, 2020  
 
  Articles for Entrepreneurs  
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Q3 2009 Business Valuation Data

 

 

Sell My New York, NY Business

We just received the latest New York, New York business valuation data for Third Quarter 2009.

Median Ask Prices for New York, NY Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the New York-Northern New Jersey-Long Island, NY-NJ-PA metro area for the last 11 quarters.

Quarter

Median Ask

Q1 2007

$268,500

Q2 2007

$250,000

Q3 2007

$250,000

Q4 2007

$250,000

Q1 2008

$250,000

Q2 2008

$257,000

Q3 2008

$250,000

Q4 2008

$250,000

Q1 2009

$250,000

Q2 2009

$250,000

Q3 2009

$250,000

As shown in the table, New York business-for-sale listings in Q3 2009 had a median asking price of $250,000.

That compares to a median ask price of $250,000 in Q3 2008. In spite of the difficult economy, New York, NY business valuations appear to be relatively stable.

Revenue Multiples for New York, NY Businesses

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

Quarter

Revenue Multiple

Q1 2007

0.87

Q2 2007

0.83

Q3 2007

0.88

Q4 2007

0.87

Q1 2008

0.87

Q2 2008

0.87

Q3 2008

0.84

Q4 2008

0.83

Q1 2009

0.82

Q2 2009

0.82

Q3 2009

0.81

In the New York-Northern New Jersey-Long Island, NY-NJ-PA metro area, companies will typically sell for 0.81 times the selling company's revenues. As shown in the chart above, that was the mean revenue multiple for Q3 2009 in this metro area.

In other words, a firm with revenues of $150,000 might list for $120,928. Remember, however, that this is just an average for revenue multiples in New York 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 New York business-for-sale listings was $442,000 in Q3 2009.

In terms of trending year over year, the Q3 2008 revenue multiple was 0.84 and the median revenue for listed New York businesses was $428,000.

Cash Flow Multiples for New York, NY Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

2.95

Q2 2007

2.94

Q3 2007

2.99

Q4 2007

2.95

Q1 2008

2.94

Q2 2008

2.94

Q3 2008

2.91

Q4 2008

2.91

Q1 2009

2.91

Q2 2009

2.91

Q3 2009

2.90

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 New York-Northern New Jersey-Long Island, NY-NJ-PA metro area was 2.90.

So, a firm with cash flows of $110,000 might list for $318,570. 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 New York, BizBuySell.com reports that the median cash flow for New York area businesses was $117,152 in Q3 2009. In Q3 2008, New York cash flow multiples averaged 2.91 and the median cash flow was $119,800.

Number of New York Businesses for Sale in the Dataset

The study data comprised 4815 listings in the New York-Northern New Jersey-Long Island, NY-NJ-PA metro area. As such, some of the businesses used to derive the median valuation might be outside of New York, but they are in the area and so are likely representative of New York business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for New York spanned 5189 listings. The downward trend in the number of New York business-for-sale listings is indicative of the current down economy.

Can I Sell My New York, NY 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 York, NY 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 more information.

 

 

 

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