Q3 2009 Business Valuation Data
Sell My Rochester, NY Business
We just received the latest Rochester, New York business valuation data for Third Quarter 2009.
Median Ask Prices for Rochester, NY 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 Rochester, NY metro area for the last 11 quarters.
As you can see from the chart above, Rochester business-for-sale listings in Q3 2009 had a median asking price of $271,900.
That compares to a median ask price of $325,000 in Q3 2008. Given that Rochester, NY median business asking prices appear to be dropping, it suggests that selling Rochester businesses may be lowering their prices to make their businesses more attractive to buyers.
Revenue Multiples for Rochester, NY Businesses
Here is how median revenue multiples are changing in the Rochester area, based on BizBuySell.com's economic data.
In the Rochester, NY metro area, small companies will typically sell for 1.58 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 business that has revenues of $150,000 might list for $236,582. Remember, however, that this is just an average for revenue multiples in Rochester 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 Rochester business-for-sale listings was $450,602 in Q3 2009.
As a reference point, the Q3 2008 revenue multiple was 1.37 and the median revenue for listed Rochester businesses was $405,000.
Cash Flow Multiples for Rochester, NY Businesses
Here is how cash flow multiples are trending in the Rochester area, based on BizBuySell.com's quarterly reports.
Flow Multiple
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 Rochester, NY metro area was 4.59.
So, a business with cash flows of $110,000 might list for $505,024. That calculation is dependent on the business selling for the area's average multiple. 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 Rochester, BizBuySell.com found that the median cash flow for Rochester area businesses was $89,288 in Q3 2009. In Q3 2008, Rochester cash flow multiples averaged 5.12 and the median cash flow was $87,334.
Number of Rochester Businesses for Sale in the Dataset
The study data comprised 50 listings in the Rochester, NY metro area. As such, some of the businesses used to derive the median valuation might be outside of Rochester, but they are in the area and so are probably representative of Rochester business valuations.
One year ago, in Q3 2008, the BizBuySell.com dataset for Rochester spanned 49 listings. In a market where you would think fewer business owners would be selling, it's a bit surprising to see more Rochester business-for-sale listings.
Should I Sell My Rochester, NY Business Now?
While some business owners are waiting to sell until the market turns around, this can be a mistake. When the market turns around, many businesses will rush to list themselves for sale and this could lead to lower sale prices because of the basic laws of supply and demand. For this reason, it might make sense to act counterintuitively to common wisdom on when it's the right time to sell a business. This good advice comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.
Business Valuations for Rochester, NY Businesses
If you are contemplating buying a business or selling a business and would like to appraise the value of a specific business, 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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