September 21, 2020  
 
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Q3 2009 Business Valuation Data

 

 

Sell My San Marcos, CA Business

We just received the latest San Marcos, California small business valuation trend data for Third Quarter 2009.

Median Ask Prices for San Marcos, CA Businesses

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

Quarter

Median Ask

Q1 2007

$200,000

Q2 2007

$195,000

Q3 2007

$195,000

Q4 2007

$195,000

Q1 2008

$220,000

Q2 2008

$239,550

Q3 2008

$220,000

Q4 2008

$199,750

Q1 2009

$199,000

Q2 2009

$195,000

Q3 2009

$194,500

As you can see from the chart above, San Marcos business-for-sale listings in Q3 2009 had a median asking price of $194,500.

That compares to a median ask price of $220,000 in Q3 2008. Given that San Marcos, CA median business asking prices appear to be dropping, it suggests that selling San Marcos businesses may be lowering their prices to make their businesses more attractive to buyers.

Revenue Multiples for San Marcos, CA Businesses

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

Quarter

Revenue Multiple

Q1 2007

0.83

Q2 2007

0.73

Q3 2007

0.83

Q4 2007

0.76

Q1 2008

0.76

Q2 2008

0.78

Q3 2008

0.73

Q4 2008

0.69

Q1 2009

0.64

Q2 2009

0.61

Q3 2009

0.63

In the San Diego-Carlsbad-San Marcos, CA metro area, small companies will typically sell for 0.63 times the selling company's revenues. The data from BizBuySell.com indicates that is the mean revenue multiple for Q3 2009 in this metro area.

In other words, a firm with revenues of $150,000 might list for $94,413. Remember, however, that this is just an average for revenue multiples in San Marcos 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 San Marcos business-for-sale listings was $364,000 in Q3 2009.

As a reference point, the Q3 2008 revenue multiple was 0.73 and the median revenue for listed San Marcos businesses was $360,000.

Cash Flow Multiples for San Marcos, CA Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

3.14

Q2 2007

3.15

Q3 2007

3.35

Q4 2007

3.13

Q1 2008

3.08

Q2 2008

3.14

Q3 2008

2.94

Q4 2008

2.77

Q1 2009

2.69

Q2 2009

2.70

Q3 2009

2.83

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 Diego-Carlsbad-San Marcos, CA metro area was 2.83.

So, a business with cash flows of $110,000 might list for $311,532. 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 San Marcos, BizBuySell.com reports that the median cash flow for San Marcos area businesses was $84,500 in Q3 2009. In Q3 2008, San Marcos cash flow multiples averaged 2.94 and the median cash flow was $90,000.

Number of San Marcos Businesses for Sale in the Dataset

The study data comprised 372 listings in the San Diego-Carlsbad-San Marcos, CA metro area. As such, some of the businesses used to derive the median valuation might be outside of San Marcos, but they are in the area and so are likely representative of San Marcos business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for San Marcos spanned 392 listings. The downward trend in the number of San Marcos business-for-sale listings is indicative of the current down economy.

Can I Sell My San Marcos, CA Business Now?

The market is turning around and it's a great time to sell. Still, you may have to be creative. For example, with credit still relatively tight, you might want to consider offing seller financing to a buyer. This will improve your odds of closing a business-for-sale transaction. This helpful tip comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for San Marcos, CA Businesses

If you are considering buying a business or selling a business and would like to look at completed transaction sale price comparables in the area, 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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