September 25, 2020  
 
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Q3 2009 Business Valuation Data

 

 

Sell My Salt Lake City, UT Business

We just received the latest Salt Lake City, Utah business valuation data for Third Quarter 2009.

Median Ask Prices for Salt Lake City, UT 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 Salt Lake City, UT metro area for the last 11 quarters.

Quarter

Median Ask

Q1 2007

$265,000

Q2 2007

$220,000

Q3 2007

$285,000

Q4 2007

$275,000

Q1 2008

$225,000

Q2 2008

$230,000

Q3 2008

$310,000

Q4 2008

$325,000

Q1 2009

$355,000

Q2 2009

$350,000

Q3 2009

$345,000

As shown in the table, Salt Lake City business-for-sale listings in Q3 2009 had a median asking price of $345,000.

That compares to a median ask price of $310,000 in Q3 2008. Because the median ask price for businesses for sale in Salt Lake City has risen year over year, we can conclude that many smaller firms in Salt Lake City are holding off on selling.

Revenue Multiples for Salt Lake City, UT Businesses

Here is how median revenue multiples are changing in the Salt Lake City area, based on BizBuySell.com's quarterly reports.

Quarter

Revenue Multiple

Q1 2007

0.81

Q2 2007

0.99

Q3 2007

1.01

Q4 2007

1.05

Q1 2008

0.97

Q2 2008

0.98

Q3 2008

0.94

Q4 2008

0.99

Q1 2009

1.10

Q2 2009

1.07

Q3 2009

1.04

In the Salt Lake City, UT metro area, businesses will typically sell for 1.04 times the selling company's revenues. The data from BizBuySell.com indicates that is 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 $155,775. Keep in mind that this is just an average for revenue multiples in Salt Lake City and surrounding communities. Some companies will have higher revenue multiples and others will have lower revenue multiples.

According to BizBuySell.com, the median revenues for its Salt Lake City business-for-sale listings was $489,850 in Q3 2009.

To put this in perspective, the Q3 2008 revenue multiple was 0.94 and the median revenue for listed Salt Lake City businesses was $450,366.

Cash Flow Multiples for Salt Lake City, UT Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

3.82

Q2 2007

3.77

Q3 2007

3.87

Q4 2007

3.83

Q1 2008

3.70

Q2 2008

3.70

Q3 2008

3.46

Q4 2008

3.45

Q1 2009

3.71

Q2 2009

3.73

Q3 2009

3.77

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 Salt Lake City, UT metro area was 3.77.

So, a firm with cash flows of $110,000 might list for $415,004. That calculation is dependent on the business selling for the area's average multiple. In practice, cash flow multiples can vary considerably from one business type to another.

If you are interested in what cash flows are for a business in Salt Lake City, BizBuySell.com reports that the median cash flow for Salt Lake City area businesses was $107,847 in Q3 2009. In Q3 2008, Salt Lake City cash flow multiples averaged 3.46 and the median cash flow was $106,608.

Number of Salt Lake City Businesses for Sale in the Dataset

The study data comprised 227 listings in the Salt Lake City, UT metro area. As such, some of the businesses used to derive the median valuation might be outside of Salt Lake City, but they are in the area and so are probably representative of Salt Lake City business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for Salt Lake City spanned 228 listings. The downward trend in the number of Salt Lake City business-for-sale listings is indicative of the current down economy.

Can I Sell My Salt Lake City, UT 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 Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Salt Lake City, UT Businesses

If you are considering buying a business or selling a business and would like to appraise the value of a specific business, we suggest you try 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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