September 20, 2020  
 
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Q3 2009 Business Valuation Data

 

 

Sell My Newport News, VA Business

We just received the latest Newport News, Virginia business valuation data for Third Quarter 2009.

Median Ask Prices for Newport News, VA Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Virginia Beach-Norfolk-Newport News, VA-NC metro area for the last 11 quarters.

Quarter

Median Ask

Q1 2007

$275,000

Q2 2007

$250,000

Q3 2007

$255,000

Q4 2007

$247,500

Q1 2008

$225,000

Q2 2008

$229,500

Q3 2008

$239,250

Q4 2008

$258,750

Q1 2009

$280,000

Q2 2009

$250,000

Q3 2009

$227,000

As shown in the table, Newport News business-for-sale listings in Q3 2009 had a median asking price of $227,000.

That compares to a median ask price of $239,250 in Q3 2008. Given that Newport News, VA median business asking prices appear to be dropping, it suggests that selling Newport News businesses may be lowering their prices to make their businesses more attractive to buyers.

Revenue Multiples for Newport News, VA Businesses

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

Quarter

Revenue Multiple

Q1 2007

0.78

Q2 2007

0.78

Q3 2007

0.88

Q4 2007

0.79

Q1 2008

0.74

Q2 2008

0.74

Q3 2008

0.75

Q4 2008

0.76

Q1 2009

0.77

Q2 2009

0.79

Q3 2009

0.78

In the Virginia Beach-Norfolk-Newport News, VA-NC metro area, businesses will typically sell for 0.78 times the selling company's revenues. As shown in the chart above, that was 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 $116,460. Remember, however, that this is strictly an average for revenue multiples in Newport News 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 Newport News business-for-sale listings was $377,500 in Q3 2009.

To give this some context, the Q3 2008 revenue multiple was 0.75 and the median revenue for listed Newport News businesses was $392,500.

Cash Flow Multiples for Newport News, VA Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

3.46

Q2 2007

3.44

Q3 2007

3.51

Q4 2007

3.30

Q1 2008

3.23

Q2 2008

3.15

Q3 2008

3.07

Q4 2008

3.20

Q1 2009

3.33

Q2 2009

3.42

Q3 2009

3.66

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 Virginia Beach-Norfolk-Newport News, VA-NC metro area was 3.66.

So, a company with cash flows of $110,000 might list for $402,179. That calculation is dependent on the business selling for the area's average multiple. In practice, cash flow multiples can vary considerably from one business type to another.

If you are interested in what cash flows are for a business in Newport News, BizBuySell.com determined that the median cash flow for Newport News area businesses was $83,456 in Q3 2009. In Q3 2008, Newport News cash flow multiples averaged 3.07 and the median cash flow was $90,554.

Number of Newport News Businesses for Sale in the Dataset

The study data comprised 206 listings in the Virginia Beach-Norfolk-Newport News, VA-NC metro area. As such, some of the businesses used to derive the median valuation might be outside of Newport News, but they are nearby and so are probably representative of Newport News business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for Newport News spanned 228 listings. The downward trend in the number of Newport News business-for-sale listings is indicative of the current down economy.

Can I Sell My Newport News, VA Business Now?

You should consider selling your business if you think a buyer will be willing to pay a price that you are happy with. The economy should not be the major determining factor. In fact, some countercyclical companies sell for more in a down economy than they do in an up economy. This tip for selling a business was provided by Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Newport News, VA Businesses

If you are contemplating 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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