September 29, 2020  
 
  Articles for Entrepreneurs  
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Q3 2009 Business Valuation Data

 

 

Sell My Pittsburgh, PA Business

We just received the latest Pittsburgh, Pennsylvania business valuation data for Third Quarter 2009.

Median Ask Prices for Pittsburgh, PA Businesses

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

Quarter

Median Ask

Q1 2007

$175,000

Q2 2007

$225,000

Q3 2007

$275,534

Q4 2007

$283,034

Q1 2008

$283,034

Q2 2008

$250,000

Q3 2008

$250,000

Q4 2008

$235,000

Q1 2009

$275,000

Q2 2009

$212,000

Q3 2009

$175,000

As you can see from the chart above, Pittsburgh business-for-sale listings in Q3 2009 had a median asking price of $175,000.

That compares to a median ask price of $250,000 in Q3 2008. Given that Pittsburgh, PA median business asking prices appear to be dropping, it suggests that selling Pittsburgh businesses may be lowering their prices to make their businesses more attractive to buyers.

Revenue Multiples for Pittsburgh, PA Businesses

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

Quarter

Revenue Multiple

Q1 2007

0.73

Q2 2007

0.82

Q3 2007

0.98

Q4 2007

1.08

Q1 2008

0.96

Q2 2008

0.86

Q3 2008

0.87

Q4 2008

0.91

Q1 2009

0.97

Q2 2009

1.05

Q3 2009

0.87

In the Pittsburgh, PA metro area, small businesses will typically sell for 0.87 times the selling company's revenues. As shown in the chart above, that was the mean revenue multiple for Q3 2009 in this part of the country.

In other words, a firm with revenues of $150,000 might list for $130,269. Keep in mind that this is just 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 Pittsburgh business-for-sale listings was $323,380 in Q3 2009.

In terms of trending year over year, the Q3 2008 revenue multiple was 0.87 and the median revenue for listed Pittsburgh businesses was $377,500.

Cash Flow Multiples for Pittsburgh, PA Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

3.29

Q2 2007

4.03

Q3 2007

4.20

Q4 2007

4.29

Q1 2008

3.97

Q2 2008

3.79

Q3 2008

3.69

Q4 2008

3.77

Q1 2009

3.88

Q2 2009

4.04

Q3 2009

3.64

As you probably know, cash flow multiples are another useful method to value a business.

For Q3 2009, the average cash flow multiple for listed businesses in the Pittsburgh, PA metro area was 3.64.

So, a business with cash flows of $110,000 might list for $400,739. That calculation is dependent on the business selling for the area's average multiple. Most businesses will not conform to industry- or area averages.

In case you were wondering what typical cash flows are for a business in Pittsburgh, BizBuySell.com reports that the median cash flow for Pittsburgh area businesses was $65,000 in Q3 2009. In Q3 2008, Pittsburgh cash flow multiples averaged 3.69 and the median cash flow was $80,000.

Number of Pittsburgh Businesses for Sale in the Dataset

The study data comprised 93 listings in the Pittsburgh, PA metro area. As such, some of the businesses used to derive the median valuation might be outside of Pittsburgh, but they are close by and so are probably representative of Pittsburgh business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for Pittsburgh spanned 126 listings. In a market where you would think fewer business owners would be selling, it's a bit surprising to see more Pittsburgh business-for-sale listings.

Should I Sell My Pittsburgh, PA Business Now?

Any business can be sold at any time. For example, a recent business-for-sale listing with flat sales over the past two years and slightly fluctuating cash flows was able to get five offers. With the right team helping you to sell a business, you can without a doubt arrive at an attractive business exit for the owner. This helpful business selling tip comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Pittsburgh, PA 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 more information.

 

 

 

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