September 26, 2020  
 
  Articles for Entrepreneurs  
Gaebler.com is a daily online magazine covering small business news. We help entrepreneurs transform ideas and innovations into greatness.

Q3 2009 Business Valuation Data

 

 

Sell My Schenectady, NY Business

We just received the latest Schenectady, New York business valuation data for Third Quarter 2009.

Median Ask Prices for Schenectady, NY Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Albany-Schenectady-Troy, NY metro area for the last 11 quarters.

Quarter

Median Ask

Q1 2007

$399,000

Q2 2007

$450,000

Q3 2007

$499,000

Q4 2007

$524,500

Q1 2008

$479,000

Q2 2008

$499,000

Q3 2008

$496,500

Q4 2008

$495,000

Q1 2009

$444,950

Q2 2009

$379,000

Q3 2009

$369,500

As you can see from the chart above, Schenectady business-for-sale listings in Q3 2009 had a median asking price of $369,500.

That compares to a median ask price of $496,500 in Q3 2008. The lower median asking price in last quarter suggests that Schenectady, NY sellers are dropping their asking prices in light of market conditions. This is making it possible for more business-for-sale transactions to close.

Revenue Multiples for Schenectady, NY Businesses

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

Quarter

Revenue Multiple

Q1 2007

1.70

Q2 2007

2.14

Q3 2007

1.86

Q4 2007

1.88

Q1 2008

1.90

Q2 2008

1.85

Q3 2008

1.86

Q4 2008

2.02

Q1 2009

1.92

Q2 2009

1.74

Q3 2009

1.72

In the Albany-Schenectady-Troy, NY metro area, small companies will typically sell for 1.72 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 $257,799. Remember, however, that this is just an average for revenue multiples in Schenectady and surrounding communities. Some small businesses will have higher revenue multiples and others will have lower revenue multiples.

According to BizBuySell.com, the median revenues for its Schenectady business-for-sale listings was $400,000 in Q3 2009.

As a reference point, the Q3 2008 revenue multiple was 1.86 and the median revenue for listed Schenectady businesses was $420,000.

Cash Flow Multiples for Schenectady, NY Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

3.49

Q2 2007

4.46

Q3 2007

4.27

Q4 2007

4.21

Q1 2008

4.30

Q2 2008

4.34

Q3 2008

4.29

Q4 2008

4.94

Q1 2009

4.97

Q2 2009

4.59

Q3 2009

4.49

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 Albany-Schenectady-Troy, NY metro area was 4.49.

So, a business with cash flows of $110,000 might list for $494,208. 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 Schenectady, BizBuySell.com reports that the median cash flow for Schenectady area businesses was $130,000 in Q3 2009. In Q3 2008, Schenectady cash flow multiples averaged 4.29 and the median cash flow was $140,307.

Number of Schenectady Businesses for Sale in the Dataset

The study data comprised 73 listings in the Albany-Schenectady-Troy, NY metro area. Many of the businesses in the dataset are outside of Schenectady, but they are close by and so are probably representative of Schenectady business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for Schenectady spanned 70 listings. In a market where you would think fewer business owners would be selling it's a bit surprising to see more Schenectady business-for-sale listings.

Can I Sell My Schenectady, NY 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 Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Schenectady, NY Businesses

If you are contemplating buying a business or selling a business and would like to appraise the value of a specific business, 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.

 

 

 

Additional Resources for Entrepreneurs

Administrative Professionals / Office Managers

Family Business Advice

Good Businesses to Start

Start an Energy Business

Start a Hedge Fund

Payroll Service Information

Productivity Tips

Bad Economy Advice

Small Business Websites

Search Engine Optimization

Online Reputation