September 20, 2020  
 
  Articles for Entrepreneurs  
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Q3 2009 Business Valuation Data

 

 

Sell My Round Rock, TX Business

We just received the latest Round Rock, Texas business-for-sale statistics.

Median Ask Prices for Round Rock, TX Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Austin-Round Rock, TX metro area for the last 11 quarters.

Quarter

Median Ask

Q1 2007

$250,000

Q2 2007

$250,000

Q3 2007

$275,000

Q4 2007

$295,000

Q1 2008

$297,000

Q2 2008

$290,000

Q3 2008

$357,500

Q4 2008

$350,000

Q1 2009

$325,000

Q2 2009

$400,000

Q3 2009

$400,000

As shown in the table, Round Rock business-for-sale listings in Q3 2009 had a median asking price of $400,000.

That compares to a median ask price of $357,500 in Q3 2008. Because the median ask price for businesses for sale in Round Rock has risen year over year, we can conclude that many smaller firms in Round Rock are holding off on selling.

Revenue Multiples for Round Rock, TX Businesses

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

Quarter

Revenue Multiple

Q1 2007

0.95

Q2 2007

1.08

Q3 2007

0.97

Q4 2007

0.98

Q1 2008

0.95

Q2 2008

0.96

Q3 2008

1.03

Q4 2008

0.95

Q1 2009

0.97

Q2 2009

1.03

Q3 2009

0.99

In the Austin-Round Rock, TX metro area, companies will usually sell for 0.99 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 $149,224. 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 Round Rock business-for-sale listings was $600,000 in Q3 2009.

In terms of trending year over year, the Q3 2008 revenue multiple was 1.03 and the median revenue for listed Round Rock businesses was $508,243.

Cash Flow Multiples for Round Rock, TX Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

4.02

Q2 2007

3.63

Q3 2007

3.31

Q4 2007

3.23

Q1 2008

3.56

Q2 2008

3.71

Q3 2008

3.98

Q4 2008

3.82

Q1 2009

3.88

Q2 2009

4.02

Q3 2009

4.03

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 Austin-Round Rock, TX metro area was 4.03.

So, a business with cash flows of $110,000 might list for $443,707. That's only if the firm complies with the local average. Most businesses will not conform to industry- or area averages.

If you are interested in what cash flows are for a business in Round Rock, BizBuySell.com reports that the median cash flow for Round Rock area businesses was $131,683 in Q3 2009. In Q3 2008, Round Rock cash flow multiples averaged 3.98 and the median cash flow was $111,680.

Number of Round Rock Businesses for Sale in the Dataset

The study data comprised 201 listings in the Austin-Round Rock, TX metro area. Many of the businesses in the dataset are outside of Round Rock, but they are in the area and so are probably representative of Round Rock business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for Round Rock spanned 200 listings. In a market where you would think fewer business owners would be selling it's a bit surprising to see more Round Rock business-for-sale listings.

Can I Sell My Round Rock, TX Business Now?

If you are trying to decide if this is a good time to sell a business, hire a third-party business appraisal firm to determine a business valuation for the company. This exercise should give you much better insights on whether it's a good time to sell or not. A consultation with a qualified business broker will also be very helpful to you. This useful business selling advice comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Round Rock, TX Businesses

If you are contemplating buying a business or selling a business and would like to determine how much a business is worth, 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 additional information.

 

 

 

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