Q3 2009 Business Valuation Data

Sell My San Antonio, TX Business

We just received the latest San Antonio, Texas business valuation data for Third Quarter 2009.

Median Ask Prices for San Antonio, TX Businesses

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

Quarter
Median Ask
Q1 2007
$345,000
Q2 2007
$312,500
Q3 2007
$299,000
Q4 2007
$299,000
Q1 2008
$275,000
Q2 2008
$317,500
Q3 2008
$320,000
Q4 2008
$307,500
Q1 2009
$250,000
Q2 2009
$275,000
Q3 2009
$265,000

As you can see from the chart above, San Antonio business-for-sale listings in Q3 2009 had a median asking price of $265,000.

That compares to a median ask price of $320,000 in Q3 2008. Given that San Antonio, TX median business asking prices appear to be dropping, it suggests that selling San Antonio businesses may be lowering their prices to make their businesses more attractive to buyers.

Revenue Multiples for San Antonio, TX Businesses

Here is how median revenue multiples are trending in the San Antonio area, based on BizBuySell.com's data.

Quarter
Revenue Multiple
Q1 2007
1.20
Q2 2007
1.24
Q3 2007
1.07
Q4 2007
1.01
Q1 2008
1.04
Q2 2008
1.15
Q3 2008
1.15
Q4 2008
1.21
Q1 2009
1.11
Q2 2009
1.08
Q3 2009
0.93

In the San Antonio, TX metro area, small companies will typically sell for 0.93 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 business that has revenues of $150,000 might list for $139,227. Remember, however, that this is just an average for revenue multiples in the area. Some businesses will have higher revenue multiples and others will have lower revenue multiples.

According to BizBuySell.com, the median revenues for its San Antonio business-for-sale listings was $429,500 in Q3 2009.

As a reference point, the Q3 2008 revenue multiple was 1.15 and the median revenue for listed San Antonio businesses was $492,336.

Cash Flow Multiples for San Antonio, TX Businesses

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

Quarter
Median Cash
Flow Multiple
Q1 2007
4.29
Q2 2007
4.45
Q3 2007
3.94
Q4 2007
3.91
Q1 2008
3.82
Q2 2008
3.98
Q3 2008
4.04
Q4 2008
4.23
Q1 2009
4.03
Q2 2009
3.96
Q3 2009
3.93

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 San Antonio, TX metro area was 3.93.

So, a company with cash flows of $110,000 might list for $431,889. 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 San Antonio, BizBuySell.com found that the median cash flow for San Antonio area businesses was $86,500 in Q3 2009. In Q3 2008, San Antonio cash flow multiples averaged 4.04 and the median cash flow was $100,000.

Number of San Antonio Businesses for Sale in the Dataset

The study data comprised 156 listings in the San Antonio, TX metro area. As such, some of the businesses used to derive the median valuation might be outside of San Antonio, but they are in the area and so are likely representative of San Antonio business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for San Antonio spanned 145 listings. In a market where you would think fewer business owners would be selling it's a bit surprising to see more San Antonio business-for-sale listings.

Should I Sell My San Antonio, TX Business Now?

While the economy can play a role in deciding whether to sell a business or not, it is only one of many factors. Indications suggest that the economy is turning around, so it's probaby a good time to consider selling right now. Beyond that, though, you have to look at your specific case. Will there be substantial demand for your business? Will you be able to get a good price when selling your company? If not, think about what factors you can control that can make your business more attractive to prospective buyers, and then work diligently to improve your business attractiveness and raise your business valuation. This helpful advice was provided by Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.

Business Valuations for San Antonio, 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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