September 26, 2020  
 
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Q3 2009 Business Valuation Data

 

 

Sell My Scottsdale, AZ Business

BizBuySell.com has just released its Scottsdale, Arizona business valuation data for Third Quarter 2009.

Median Ask Prices for Scottsdale, AZ Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Phoenix-Mesa-Scottsdale, AZ metro area for the last 11 quarters.

Quarter

Median Ask

Q1 2007

$200,000

Q2 2007

$195,000

Q3 2007

$225,000

Q4 2007

$219,000

Q1 2008

$220,000

Q2 2008

$225,000

Q3 2008

$210,000

Q4 2008

$200,000

Q1 2009

$210,000

Q2 2009

$190,000

Q3 2009

$190,000

As you can see from the chart above, Scottsdale business-for-sale listings in Q3 2009 had a median asking price of $190,000.

That compares to a median ask price of $210,000 in Q3 2008. The lower median asking price in last quarter suggests that Scottsdale, AZ 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 Scottsdale, AZ Businesses

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

Quarter

Revenue Multiple

Q1 2007

0.88

Q2 2007

0.84

Q3 2007

0.92

Q4 2007

0.90

Q1 2008

0.88

Q2 2008

0.88

Q3 2008

0.91

Q4 2008

0.88

Q1 2009

0.89

Q2 2009

0.84

Q3 2009

0.85

In the Phoenix-Mesa-Scottsdale, AZ metro area, small businesses will typically sell for 0.85 times the selling company's revenues. As shown in the chart above, that was the mean revenue multiple for Q3 2009 in this metro area.

In other words, a firm with revenues of $150,000 might list for $127,775. Remember, however, that this is just an average for revenue multiples in Scottsdale 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 Scottsdale business-for-sale listings was $300,000 in Q3 2009.

To put this in perspective, the Q3 2008 revenue multiple was 0.91 and the median revenue for listed Scottsdale businesses was $332,897.

Cash Flow Multiples for Scottsdale, AZ Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

3.20

Q2 2007

3.10

Q3 2007

3.30

Q4 2007

3.21

Q1 2008

3.27

Q2 2008

3.26

Q3 2008

3.26

Q4 2008

3.19

Q1 2009

3.27

Q2 2009

3.10

Q3 2009

3.11

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 Phoenix-Mesa-Scottsdale, AZ metro area was 3.11.

So, a business with cash flows of $110,000 might list for $341,598. That's only if the firm complies with the local average. In practice, cash flow multiples can vary considerably from one business type to another.

In case you were wondering what typical cash flows are for a business in Scottsdale, BizBuySell.com reports that the median cash flow for Scottsdale area businesses was $75,000 in Q3 2009. In Q3 2008, Scottsdale cash flow multiples averaged 3.26 and the median cash flow was $82,425.

Number of Scottsdale Businesses for Sale in the Dataset

The study data comprised 1181 listings in the Phoenix-Mesa-Scottsdale, AZ metro area. Many of the businesses in the dataset are outside of Scottsdale, but they are in the area and so are probably representative of Scottsdale business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for Scottsdale spanned 1517 listings. The downward trend in the number of Scottsdale business-for-sale listings is indicative of the current down economy.

Can I Sell My Scottsdale, AZ 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 Scottsdale, AZ Businesses

If you are contemplating 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 published quarterly. If you find these trends interesting, take a moment to visit BizBuySell.com Insights Report for more information.

 

 

 

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