Q3 2009 Business Valuation Data

Sell My Ontario, CA Business

We just received the latest Ontario, California business valuation data for Third Quarter 2009.

Median Ask Prices for Ontario, CA 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 Riverside-San Bernardino-Ontario, CA metro area for the last 11 quarters.

Quarter
Median Ask
Q1 2007
$270,000
Q2 2007
$214,000
Q3 2007
$250,000
Q4 2007
$270,000
Q1 2008
$275,000
Q2 2008
$275,000
Q3 2008
$250,000
Q4 2008
$250,000
Q1 2009
$249,000
Q2 2009
$225,000
Q3 2009
$220,000

As you can see from the chart above, Ontario business-for-sale listings in Q3 2009 had a median asking price of $220,000.

That compares to a median ask price of $250,000 in Q3 2008. The lower median asking price in last quarter suggests that Ontario, 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 Ontario, CA Businesses

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

Quarter
Revenue Multiple
Q1 2007
0.87
Q2 2007
0.92
Q3 2007
0.89
Q4 2007
0.89
Q1 2008
0.83
Q2 2008
0.87
Q3 2008
0.80
Q4 2008
0.82
Q1 2009
0.81
Q2 2009
0.86
Q3 2009
0.87

In the Riverside-San Bernardino-Ontario, CA metro area, companies will typically sell for 0.87 times the selling company's revenues. The data from BizBuySell.com indicates that is the mean revenue multiple for Q3 2009 in this metro area.

In other words, a business that has revenues of $150,000 might list for $130,391. 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 Ontario business-for-sale listings was $381,500 in Q3 2009.

As a reference point, the Q3 2008 revenue multiple was 0.80 and the median revenue for listed Ontario businesses was $440,000.

Cash Flow Multiples for Ontario, CA Businesses

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

Quarter
Median Cash
Flow Multiple
Q1 2007
3.11
Q2 2007
3.21
Q3 2007
3.21
Q4 2007
3.27
Q1 2008
3.25
Q2 2008
3.32
Q3 2008
3.06
Q4 2008
3.12
Q1 2009
3.16
Q2 2009
3.14
Q3 2009
3.09

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 Riverside-San Bernardino-Ontario, CA metro area was 3.09.

So, a business with cash flows of $110,000 might list for $340,425. That's only if the firm complies with the local average. In practice, cash flow multiples can vary considerably from one business type to another.

In case you were wondering what typical cash flows are for a business in Ontario, BizBuySell.com reports that the median cash flow for Ontario area businesses was $95,500 in Q3 2009. In Q3 2008, Ontario cash flow multiples averaged 3.06 and the median cash flow was $100,000.

Number of Ontario Businesses for Sale in the Dataset

The study data comprised 540 listings in the Riverside-San Bernardino-Ontario, CA metro area. Many of the businesses in the dataset are outside of Ontario, but they are in the area and so are probably representative of Ontario business valuations.

In Q3 2008, just one year ago, there were 701 Ontario listings in the BizBuySell.com dataset. As a result of the recession, fewer Ontario business owners are selling because they hope to weather the storm and sell after the economy turns around.

Can I Sell My Ontario, CA Business Now?

With the right plan and the right advisors, now might be a great time to exit the business. Credit is easing up and the SBA recently liftened some burdensome caps on goodwill financing. Start now, take the time to do it right, and you'll be able to find a buyer with a price that's right for you. This advice on how to sell a company comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.

Business Valuations for Ontario, CA 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 published quarterly. If you find these trends interesting, take a moment to visit BizBuySell.com Insights Report for additional information.

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