September 24, 2020  
 
  Articles for Entrepreneurs  
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Q3 2009 Business Valuation Data

 

 

Sell My Norwalk, CT Business

We just received the latest Norwalk, Connecticut business-for-sale statistics.

Median Ask Prices for Norwalk, CT 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 Bridgeport-Stamford-Norwalk, CT metro area for the last 11 quarters.

Quarter

Median Ask

Q1 2007

$265,000

Q2 2007

$211,000

Q3 2007

$229,000

Q4 2007

$225,000

Q1 2008

$227,000

Q2 2008

$239,500

Q3 2008

$249,998

Q4 2008

$255,000

Q1 2009

$250,000

Q2 2009

$265,000

Q3 2009

$255,000

As shown in the table, Norwalk business-for-sale listings in Q3 2009 had a median asking price of $255,000.

That compares to a median ask price of $249,998 in Q3 2008. Since the median ask price for businesses for sale in Norwalk has gone up year over year, we can conclude that many smaller businesses in Norwalk are putting off selling.

Revenue Multiples for Norwalk, CT Businesses

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

Quarter

Revenue Multiple

Q1 2007

0.79

Q2 2007

0.65

Q3 2007

0.64

Q4 2007

0.71

Q1 2008

0.66

Q2 2008

0.71

Q3 2008

0.73

Q4 2008

0.77

Q1 2009

0.85

Q2 2009

0.84

Q3 2009

0.86

In the Bridgeport-Stamford-Norwalk, CT metro area, small companies will usually sell for 0.86 times the selling company's revenues. The data from BizBuySell.com indicates that is the mean revenue multiple for Q3 2009 in this area of the country.

In other words, a firm with revenues of $150,000 might list for $128,918. Remember, however, that this is just an average for revenue multiples in Norwalk and surrounding communities. Some businesses will have higher revenue multiples and others will have lower revenue multiples.

According to BizBuySell.com, the median revenues for its Norwalk business-for-sale listings was $416,000 in Q3 2009.

To put this in perspective, the Q3 2008 revenue multiple was 0.73 and the median revenue for listed Norwalk businesses was $400,720.

Cash Flow Multiples for Norwalk, CT Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

3.26

Q2 2007

2.76

Q3 2007

2.49

Q4 2007

2.60

Q1 2008

2.66

Q2 2008

2.80

Q3 2008

2.79

Q4 2008

2.92

Q1 2009

3.21

Q2 2009

3.12

Q3 2009

2.93

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 Bridgeport-Stamford-Norwalk, CT metro area was 2.93.

So, a firm with cash flows of $110,000 might list for $322,226. 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 Norwalk, BizBuySell.com reports that the median cash flow for Norwalk area businesses was $100,000 in Q3 2009. In Q3 2008, Norwalk cash flow multiples averaged 2.79 and the median cash flow was $98,080.

Number of Norwalk Businesses for Sale in the Dataset

The study data comprised 151 listings in the Bridgeport-Stamford-Norwalk, CT metro area. As such, some of the businesses used to derive the median valuation might be outside of Norwalk, but they are in the area and so are probably representative of Norwalk business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for Norwalk spanned 194 listings. The downward trend in the number of Norwalk business-for-sale listings is indicative of the current down economy.

Should I Sell My Norwalk, CT Business Now?

It can take a long time to get a business ready to sell. The sooner you start the process, the sooner you'll be in good shape to entertain offers from would-be business buyers. This helpful advice on how to buy a business comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Norwalk, CT 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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