September 18, 2020  
 
  Articles for Entrepreneurs  
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Q3 2009 Business Valuation Data

 

 

Sell My St. Louis, MO Business

We just received the latest St. Louis, Missouri business-for-sale statistics.

Median Ask Prices for St. Louis, MO Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the St. Louis, MO-IL metro area for the last 11 quarters.

Quarter

Median Ask

Q1 2007

$189,500

Q2 2007

$230,000

Q3 2007

$249,500

Q4 2007

$272,200

Q1 2008

$275,000

Q2 2008

$275,000

Q3 2008

$278,500

Q4 2008

$278,500

Q1 2009

$249,000

Q2 2009

$249,000

Q3 2009

$220,500

As shown in the table, St. Louis business-for-sale listings in Q3 2009 had a median asking price of $220,500.

That compares to a median ask price of $278,500 in Q3 2008. The lower median asking price in last quarter suggests that St. Louis, MO 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 St. Louis, MO Businesses

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

Quarter

Revenue Multiple

Q1 2007

0.95

Q2 2007

0.71

Q3 2007

0.80

Q4 2007

0.80

Q1 2008

0.83

Q2 2008

0.84

Q3 2008

0.85

Q4 2008

0.87

Q1 2009

0.81

Q2 2009

0.83

Q3 2009

0.86

In the St. Louis, MO-IL metro area, small companies will typically sell for 0.86 times the selling company's revenues. As the table above indicates, this was the mean revenue multiple for Q3 2009 in this part of the country.

In other words, a business that has revenues of $150,000 might list for $129,555. Keep in mind that this is just an average for revenue multiples in the area. Some entities will have higher revenue multiples and others will have lower revenue multiples.

According to BizBuySell.com, the median revenues for its St. Louis business-for-sale listings was $377,500 in Q3 2009.

As a reference point, the Q3 2008 revenue multiple was 0.85 and the median revenue for listed St. Louis businesses was $475,614.

Cash Flow Multiples for St. Louis, MO Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

3.76

Q2 2007

3.14

Q3 2007

3.41

Q4 2007

3.59

Q1 2008

3.58

Q2 2008

3.64

Q3 2008

3.99

Q4 2008

4.19

Q1 2009

4.10

Q2 2009

4.28

Q3 2009

4.00

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 St. Louis, MO-IL metro area was 4.00.

So, a company with cash flows of $110,000 might list for $440,116. 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 St. Louis, BizBuySell.com reports that the median cash flow for St. Louis area businesses was $71,360 in Q3 2009. In Q3 2008, St. Louis cash flow multiples averaged 3.99 and the median cash flow was $92,708.

Number of St. Louis Businesses for Sale in the Dataset

The study data comprised 206 listings in the St. Louis, MO-IL metro area. As such, some of the businesses used to derive the median valuation might be outside of St. Louis, but they are in the area and so are likely representative of St. Louis business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for St. Louis spanned 194 listings. In a market where you would think fewer business owners would be selling it's a bit surprising to see more St. Louis business-for-sale listings.

Can I Sell My St. Louis, MO Business Now?

If you want to sell a business now, odds are you can sell now. You may even be able to get a premium acquisition price from a buyer. It all depends on how well you execute. Plenty of deals are getting done, all the time regardless of macro factors. This good selling-a-business tip comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for St. Louis, MO 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 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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