Q3 2009 Business Valuation Data

Sell My San Bernardino, CA Business

Every quarter, BizBuySell.com publishes business valuation data, and we now have their latest San Bernardino, California business valuation data for Third Quarter 2009.

Median Ask Prices for San Bernardino, CA 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 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, San Bernardino 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. Given that San Bernardino, CA median business asking prices appear to be dropping, it suggests that selling San Bernardino businesses may be lowering their prices to make their businesses more attractive to buyers.

Revenue Multiples for San Bernardino, CA Businesses

Here is how median revenue multiples are changing in the San Bernardino 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 area of the country.

In other words, a business that has revenues of $150,000 might list for $130,391. Remember, however, that this is just an average for revenue multiples in San Bernardino and surrounding communities. Some firms will have higher revenue multiples and others will have lower revenue multiples.

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

To put this in perspective, the Q3 2008 revenue multiple was 0.80 and the median revenue for listed San Bernardino businesses was $440,000.

Cash Flow Multiples for San Bernardino, CA Businesses

The table below shows how cash flow multiples are trending in the San Bernardino 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 useful method 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 business with cash flows of $110,000 might list for $340,425. That's only if the firm complies with the local average. Actual cash flow multiples are based on business specifics.

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

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

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

Should I Sell My San Bernardino, 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 Sun Acquisitions, a leading business brokerage firm.

Business Valuations for San Bernardino, CA Businesses

If you are thinking about 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 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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