September 30, 2020  
 
  Articles for Entrepreneurs  
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Q3 2009 Business Valuation Data

 

 

Sell My Northern New Jersey, NJ Business

Every quarter, BizBuySell.com publishes business valuation data, and we now have their latest Northern New Jersey, New Jersey business-for-sale statistics.

Median Ask Prices for Northern New Jersey, NJ 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, Northern New Jersey 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. Northern New Jersey, NJ business values are showing stability even in this tough economic environment.

Revenue Multiples for Northern New Jersey, NJ Businesses

Here is how median revenue multiples are trending in the Northern New Jersey 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, small 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 area of the country.

In other words, a business that has revenues of $150,000 might list for $120,928. Remember, however, that this is just an average for revenue multiples in the area. Some entities will have higher revenue multiples and others will have lower revenue multiples.

According to BizBuySell.com, the median revenues for its Northern New Jersey business-for-sale listings was $442,000 in Q3 2009.

To put this in perspective, the Q3 2008 revenue multiple was 0.84 and the median revenue for listed Northern New Jersey businesses was $428,000.

Cash Flow Multiples for Northern New Jersey, NJ Businesses

The table below shows how cash flow multiples are trending in the Northern New Jersey 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 useful method 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 business 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 Northern New Jersey, BizBuySell.com reports that the median cash flow for Northern New Jersey area businesses was $117,152 in Q3 2009. In Q3 2008, Northern New Jersey cash flow multiples averaged 2.91 and the median cash flow was $119,800.

Number of Northern New Jersey 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 Northern New Jersey, but they are in the area and so are likely representative of Northern New Jersey business valuations.

In Q3 2008, just one year ago, there were 5189 Northern New Jersey listings in the BizBuySell.com dataset. As a result of the recession, fewer Northern New Jersey business owners are selling because they hope to weather the storm and sell after the economy turns around.

Can I Sell My Northern New Jersey, NJ Business Now?

If you want to sell a business now, odds are you can sell now. You may even be able to get a premium acquisition price from a buyer. It all depends on how well you execute. Plenty of deals are getting done, all the time regardless of macro factors. This good selling-a-business tip comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Northern New Jersey, NJ 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 more information.

 

 

 

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