Q3 2009 Business Valuation Data
Sell My Paradise, NV Business
We just received the latest Paradise, Nevada statistics on business valuations for Third Quarter 2009.
Median Ask Prices for Paradise, NV Businesses
If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Las Vegas-Paradise, NV metro area for the last 11 quarters.
As you can see from the chart above, Paradise business-for-sale listings in Q3 2009 had a median asking price of $249,500.
That compares to a median ask price of $225,000 in Q3 2008. Because the median ask price for businesses for sale in Paradise has risen year over year, we can conclude that many smaller firms in Paradise are holding off on selling.
Revenue Multiples for Paradise, NV Businesses
Here is how median revenue multiples are trending in the Paradise area, based on BizBuySell.com's quarterly reports.
In the Las Vegas-Paradise, NV metro area, small companies will typically sell for 0.77 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 firm with revenues of $150,000 might list for $115,572. Remember, however, that this is only an average for revenue multiples in the area. Some firms will have higher revenue multiples and others will have lower revenue multiples.
According to BizBuySell.com, the median revenues for its Paradise business-for-sale listings was $404,522 in Q3 2009.
To put this in perspective, the Q3 2008 revenue multiple was 0.84 and the median revenue for listed Paradise businesses was $378,650.
Cash Flow Multiples for Paradise, NV Businesses
The table below shows how cash flow multiples are trending in the Paradise area, based on BizBuySell.com's quarterly reports.
As you probably know, cash flow multiples are another common way to value a business.
For Q3 2009, the average cash flow multiple for businesses listed in the Las Vegas-Paradise, NV metro area was 3.15.
So, a business with cash flows of $110,000 might list for $346,455. 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 Paradise, BizBuySell.com reports that the median cash flow for Paradise area businesses was $102,395 in Q3 2009. In Q3 2008, Paradise cash flow multiples averaged 3.10 and the median cash flow was $101,042.
Number of Paradise Businesses for Sale in the Dataset
The study data comprised 318 listings in the Las Vegas-Paradise, NV metro area. Many of the businesses in the dataset are outside of Paradise, but they are close by and so are likely representative of Paradise business valuations.
In Q3 2008, just one year ago, there were 496 Paradise listings in the BizBuySell.com dataset. As a result of the recession, fewer Paradise business owners are selling because they hope to weather the storm and sell after the economy turns around.
Can I Sell My Paradise, NV Business Now?
You can absolutely sell in this market. Deals are getting done every day. You just have to structure the deal properly. In this down economy, performance based pricing is very popular. When buyers and sellers differ on valuations, tools such as earnouts, equity ownership or profit sharing can bridge the valuation gap. In effect, this is a deferred purchase price, but it's a way to get a deal done in a tough economic climate. This helpful tip comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.
Business Valuations for Paradise, NV Businesses
If you are contemplating buying a business or selling a business and would like to get an estimated company valuation, 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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