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

 

 

Sell My Oakland, CA Business

BizBuySell.com has just released its Oakland, California business valuation data for Third Quarter 2009.

Median Ask Prices for Oakland, CA Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the San Francisco-Oakland-Fremont, CA metro area for the last 11 quarters.

Quarter

Median Ask

Q1 2007

$225,000

Q2 2007

$269,000

Q3 2007

$298,000

Q4 2007

$279,500

Q1 2008

$325,000

Q2 2008

$279,000

Q3 2008

$250,000

Q4 2008

$250,000

Q1 2009

$250,000

Q2 2009

$245,000

Q3 2009

$225,000

As you can see from the chart above, Oakland business-for-sale listings in Q3 2009 had a median asking price of $225,000.

That compares to a median ask price of $250,000 in Q3 2008. The lower median asking price in last quarter suggests that Oakland, CA sellers are dropping their asking prices in light of market conditions. This is making it possible for more business-for-sale transactions to close.

Revenue Multiples for Oakland, CA Businesses

Here is how median revenue multiples are moving in the Oakland area, based on BizBuySell.com's data.

Quarter

Revenue Multiple

Q1 2007

0.71

Q2 2007

0.86

Q3 2007

0.85

Q4 2007

0.81

Q1 2008

0.83

Q2 2008

0.77

Q3 2008

0.77

Q4 2008

0.69

Q1 2009

0.70

Q2 2009

0.70

Q3 2009

0.71

In the San Francisco-Oakland-Fremont, CA metro area, small companies will typically sell for 0.71 times the selling company's revenues. As the table above indicates, this was 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 $105,980. Remember, however, that this is only 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 Oakland business-for-sale listings was $425,000 in Q3 2009.

In terms of trending year over year, the Q3 2008 revenue multiple was 0.77 and the median revenue for listed Oakland businesses was $420,000.

Cash Flow Multiples for Oakland, CA Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

3.18

Q2 2007

3.14

Q3 2007

3.42

Q4 2007

3.48

Q1 2008

3.45

Q2 2008

3.35

Q3 2008

3.29

Q4 2008

3.13

Q1 2009

3.08

Q2 2009

3.05

Q3 2009

2.99

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 San Francisco-Oakland-Fremont, CA metro area was 2.99.

So, a business with cash flows of $110,000 might list for $329,344. That's only if the firm complies with the local average. Actual cash flow multiples are based on business specifics.

If you are interested in what cash flows are for a business in Oakland, BizBuySell.com reports that the median cash flow for Oakland area businesses was $91,590 in Q3 2009. In Q3 2008, Oakland cash flow multiples averaged 3.29 and the median cash flow was $99,295.

Number of Oakland Businesses for Sale in the Dataset

The study data comprised 297 listings in the San Francisco-Oakland-Fremont, CA metro area. As such, some of the businesses used to derive the median valuation might be outside of Oakland, but they are in the area and so are probably representative of Oakland business valuations.

In Q3 2008, just one year ago, there were 427 Oakland listings in the BizBuySell.com dataset. As a result of the recession, fewer Oakland business owners are selling because they hope to weather the storm and sell after the economy turns around.

Can I Sell My Oakland, CA Business Now?

It is a good time to sell a business. The market is turning and strategic buyers are very active. Many strategic buyers are flush with cash and see a great opportunity to grow market share and top-line revenues. For a selling SMB business owner, there is plenty of opportunity to cash out at a premium price. This advice on selling a business comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Oakland, CA 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 more information.

 

 

 

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