September 21, 2020  
 
  Articles for Entrepreneurs  
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Q3 2009 Business Valuation Data

 

 

Sell My Niagara Falls, NY Business

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

Median Ask Prices for Niagara Falls, NY 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 Buffalo-Niagara Falls, NY metro area for the last 11 quarters.

Quarter

Median Ask

Q1 2007

$195,000

Q2 2007

$199,000

Q3 2007

$215,000

Q4 2007

$250,000

Q1 2008

$235,000

Q2 2008

$250,000

Q3 2008

$197,500

Q4 2008

$355,000

Q1 2009

$355,000

Q2 2009

$355,000

Q3 2009

$350,000

As shown in the table, Niagara Falls business-for-sale listings in Q3 2009 had a median asking price of $350,000.

That compares to a median ask price of $197,500 in Q3 2008. Since the median ask price for businesses for sale in Niagara Falls has gone up year over year, we can conclude that many smaller businesses in Niagara Falls are putting off selling.

Revenue Multiples for Niagara Falls, NY Businesses

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

Quarter

Revenue Multiple

Q1 2007

0.85

Q2 2007

0.87

Q3 2007

0.98

Q4 2007

0.82

Q1 2008

0.73

Q2 2008

1.02

Q3 2008

1.24

Q4 2008

1.11

Q1 2009

1.01

Q2 2009

0.93

Q3 2009

0.89

In the Buffalo-Niagara Falls, NY metro area, companies will usually sell for 0.89 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 $133,679. Keep in mind that this is just an average for revenue multiples in the area. Some firms will have higher revenue multiples and others will have lower revenue multiples.

According to BizBuySell.com, the median revenues for its Niagara Falls business-for-sale listings was $436,000 in Q3 2009.

To put this in perspective, the Q3 2008 revenue multiple was 1.24 and the median revenue for listed Niagara Falls businesses was $217,500.

Cash Flow Multiples for Niagara Falls, NY Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

2.43

Q2 2007

2.90

Q3 2007

3.47

Q4 2007

3.86

Q1 2008

3.77

Q2 2008

3.84

Q3 2008

3.31

Q4 2008

3.59

Q1 2009

3.52

Q2 2009

2.80

Q3 2009

3.19

As you probably know, cash flow multiples are another popular technique to value a business.

For Q3 2009, the average cash flow multiple for listed businesses in the Buffalo-Niagara Falls, NY metro area was 3.19.

So, a business with cash flows of $110,000 might list for $350,516. That's only if the firm complies with the local average. Cash flow multiples will usually vary considerably based on many factors.

If you are interested in what cash flows are for a business in Niagara Falls, BizBuySell.com found that the median cash flow for Niagara Falls area businesses was $100,000 in Q3 2009. In Q3 2008, Niagara Falls cash flow multiples averaged 3.31 and the median cash flow was $84,646.

Number of Niagara Falls Businesses for Sale in the Dataset

The study data comprised 15 listings in the Buffalo-Niagara Falls, NY metro area. As such, some of the businesses used to derive the median valuation might be outside of Niagara Falls, but they are nearby and so are likely representative of Niagara Falls business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for Niagara Falls spanned 30 listings. The downward trend in the number of Niagara Falls business-for-sale listings is indicative of the current down economy.

Should I Sell My Niagara Falls, NY Business Now?

Selling a business is something you should start preparing to do long before you actually want to sell a business. A common mistake is to wait too long to learn about what it takes to sell a business for a premium price. Even if you don't plan on pursuing an exit for several years, you should start the process now. This useful tip for selling a business comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Niagara Falls, NY Businesses

If you are thinking about 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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