September 22, 2020  
 
  Articles for Entrepreneurs  
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Q3 2009 Business Valuation Data

 

 

Sell My Riverside, CA Business

We just received the latest Riverside, California business-for-sale statistics.

Median Ask Prices for Riverside, CA Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses 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, Riverside 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 Riverside, 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 Riverside, CA Businesses

Here is how median revenue multiples are changing in the Riverside 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, small companies 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 $130,391. Keep in mind that this is in fact an average for revenue multiples in Riverside and surrounding communities. Some businesses will have higher revenue multiples and others will have lower revenue multiples.

According to BizBuySell.com, the median revenues for its Riverside business-for-sale listings was $381,500 in Q3 2009.

In terms of trending year over year, the Q3 2008 revenue multiple was 0.80 and the median revenue for listed Riverside businesses was $440,000.

Cash Flow Multiples for Riverside, CA Businesses

The table below shows how cash flow multiples are trending in the Riverside 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 firm with cash flows of $110,000 might list for $340,425. That calculation is dependent on the business selling for the area's average multiple. Most businesses will not conform to industry- or area averages.

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

Number of Riverside 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 Riverside, but they are in the area and so are probably representative of Riverside business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for Riverside spanned 701 listings. The downward trend in the number of Riverside business-for-sale listings is indicative of the current down economy.

Can I Sell My Riverside, CA 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 Riverside, 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 published quarterly. If you find these trends interesting, take a moment to visit BizBuySell.com Insights Report for additional information.

 

 

 

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