September 18, 2020  
 
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Q3 2009 Business Valuation Data

 

 

Sell My Sandy Springs, GA Business

Every quarter, BizBuySell.com publishes business valuation data, and we now have their latest Sandy Springs, Georgia business valuation data for Third Quarter 2009.

Median Ask Prices for Sandy Springs, GA Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Atlanta-Sandy Springs-Marietta, GA metro area for the last 11 quarters.

Quarter

Median Ask

Q1 2007

$230,000

Q2 2007

$240,000

Q3 2007

$245,000

Q4 2007

$249,000

Q1 2008

$250,000

Q2 2008

$250,000

Q3 2008

$235,000

Q4 2008

$239,500

Q1 2009

$249,000

Q2 2009

$240,000

Q3 2009

$210,000

As you can see from the chart above, Sandy Springs business-for-sale listings in Q3 2009 had a median asking price of $210,000.

That compares to a median ask price of $235,000 in Q3 2008. Given that Sandy Springs, GA median business asking prices appear to be dropping, it suggests that selling Sandy Springs businesses may be lowering their prices to make their businesses more attractive to buyers.

Revenue Multiples for Sandy Springs, GA Businesses

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

Quarter

Revenue Multiple

Q1 2007

1.07

Q2 2007

0.98

Q3 2007

1.03

Q4 2007

1.00

Q1 2008

1.02

Q2 2008

1.02

Q3 2008

0.99

Q4 2008

1.01

Q1 2009

0.98

Q2 2009

0.97

Q3 2009

0.99

In the Atlanta-Sandy Springs-Marietta, GA metro area, small businesses will typically sell for 0.99 times the selling company's revenues. As the table above indicates, this 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 $148,644. Keep in mind that this is just 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 Sandy Springs business-for-sale listings was $383,033 in Q3 2009.

To put this in perspective, the Q3 2008 revenue multiple was 0.99 and the median revenue for listed Sandy Springs businesses was $351,106.

Cash Flow Multiples for Sandy Springs, GA Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

3.64

Q2 2007

3.47

Q3 2007

3.68

Q4 2007

3.57

Q1 2008

3.56

Q2 2008

3.62

Q3 2008

3.53

Q4 2008

3.51

Q1 2009

3.52

Q2 2009

3.65

Q3 2009

3.63

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 Atlanta-Sandy Springs-Marietta, GA metro area was 3.63.

So, a business with cash flows of $110,000 might list for $398,839. 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 Sandy Springs, BizBuySell.com reports that the median cash flow for Sandy Springs area businesses was $90,000 in Q3 2009. In Q3 2008, Sandy Springs cash flow multiples averaged 3.53 and the median cash flow was $94,000.

Number of Sandy Springs Businesses for Sale in the Dataset

The study data comprised 767 listings in the Atlanta-Sandy Springs-Marietta, GA metro area. As such, some of the businesses used to derive the median valuation might be outside of Sandy Springs, but they are in the area and so are probably representative of Sandy Springs business valuations.

In Q3 2008, just one year ago, there were 997 Sandy Springs listings in the BizBuySell.com dataset. As a result of the recession, fewer Sandy Springs business owners are selling because they hope to weather the storm and sell after the economy turns around.

Can I Sell My Sandy Springs, GA Business Now?

It can take a long time to get a business ready to sell. The sooner you start the process, the sooner you'll be in good shape to entertain offers from would-be business buyers. This helpful advice on how to buy a business comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Sandy Springs, GA 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 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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