Q3 2009 Business Valuation Data

Sell My Orange County, CA Business

We just received the latest Orange County, California statistics on business valuations for Third Quarter 2009.

Median Ask Prices for Orange County, CA Businesses

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

Quarter
Median Ask
Q1 2007
$199,000
Q2 2007
$199,995
Q1 2008
$220,000
Q2 2008
$222,450
Q3 2008
$220,000
Q4 2008
$220,000
Q1 2009
$200,000
Q2 2009
$210,000
Q3 2009
$200,000

As you can see from the chart above, Orange County business-for-sale listings in Q3 2009 had a median asking price of $200,000.

That compares to a median ask price of $220,000 in Q3 2008. Given that Orange County, CA median business asking prices appear to be dropping, it suggests that selling Orange County businesses may be lowering their prices to make their businesses more attractive to buyers.

Revenue Multiples for Orange County, CA Businesses

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

Quarter
Revenue Multiple
Q1 2007
0.80
Q2 2007
0.82
Q1 2008
0.81
Q2 2008
0.83
Q3 2008
0.81
Q4 2008
0.76
Q1 2009
0.75
Q2 2009
0.75
Q3 2009
0.73

In the Orange County, CA metro area, small companies will usually sell for 0.73 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 $109,340. Remember, however, that this is just an average for revenue multiples in the area. Some businesses will have higher revenue multiples and others will have lower revenue multiples.

According to BizBuySell.com, the median revenues for its Orange County business-for-sale listings was $357,300 in Q3 2009.

To give this some context, the Q3 2008 revenue multiple was 0.81 and the median revenue for listed Orange County businesses was $349,500.

Cash Flow Multiples for Orange County, CA Businesses

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

Quarter
Median Cash
Flow Multiple
Q1 2007
2.96
Q2 2007
3.00
Q1 2008
3.07
Q2 2008
3.12
Q3 2008
3.04
Q4 2008
2.97
Q1 2009
2.89
Q2 2009
2.89
Q3 2009
2.84

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 Orange County, CA metro area was 2.84.

So, a company with cash flows of $110,000 might list for $312,929. That's only if the firm complies with the local average. Cash flow multiples will usually vary considerably based on many factors.

In case you were wondering what typical cash flows are for a business in Orange County, BizBuySell.com reports that the median cash flow for Orange County area businesses was $84,000 in Q3 2009. In Q3 2008, Orange County cash flow multiples averaged 3.04 and the median cash flow was $85,000.

Number of Orange County Businesses for Sale in the Dataset

The study data comprised 894 listings in the Orange County, CA metro area. Many of the businesses in the dataset are outside of Orange County, but they are in the area and so are probably representative of Orange County business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for Orange County spanned 1128 listings. In a market where you would think fewer business owners would be selling, it's a bit surprising to see more Orange County business-for-sale listings.

Can I Sell My Orange County, CA Business Now?

While the economy can play a role in deciding whether to sell a business or not, it is only one of many factors. Indications suggest that the economy is turning around, so it's probaby a good time to consider selling right now. Beyond that, though, you have to look at your specific case. Will there be substantial demand for your business? Will you be able to get a good price when selling your company? If not, think about what factors you can control that can make your business more attractive to prospective buyers, and then work diligently to improve your business attractiveness and raise your business valuation. This helpful advice was provided by Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.

Business Valuations for Orange County, CA Businesses

If you are considering 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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