Q3 2009 Business Valuation Data
Sell My St. Paul, MN Business
BizBuySell.com has just released its St. Paul, Minnesota business valuation data for Third Quarter 2009.
Median Ask Prices for St. Paul, MN Businesses
If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Minneapolis-St. Paul-Bloomington, MN-WI metro area for the last 11 quarters.
As shown in the table, St. Paul business-for-sale listings in Q3 2009 had a median asking price of $250,000.
That compares to a median ask price of $265,000 in Q3 2008. Given that St. Paul, MN median business asking prices appear to be dropping, it suggests that selling St. Paul businesses may be lowering their prices to make their businesses more attractive to buyers.
Revenue Multiples for St. Paul, MN Businesses
Here is how median revenue multiples are moving in the St. Paul area, based on BizBuySell.com's quarterly reports.
In the Minneapolis-St. Paul-Bloomington, MN-WI metro area, small businesses will typically sell for 0.94 times the selling company's revenues. The data from BizBuySell.com indicates that is 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 $141,463. Remember, however, that this is just an average for revenue multiples in St. Paul and surrounding communities. Some entities will have higher revenue multiples and others will have lower revenue multiples.
According to BizBuySell.com, the median revenues for its St. Paul business-for-sale listings was $369,846 in Q3 2009.
As a reference point, the Q3 2008 revenue multiple was 0.91 and the median revenue for listed St. Paul businesses was $374,000.
Cash Flow Multiples for St. Paul, MN Businesses
The table below shows how cash flow multiples are trending in the St. Paul area, based on BizBuySell.com's quarterly reports.
Flow Multiple
As you probably know, cash flow multiples are another useful method to value a business.
For Q3 2009, the average cash flow multiple for listed businesses in the Minneapolis-St. Paul-Bloomington, MN-WI metro area was 4.23.
So, a business with cash flows of $110,000 might list for $464,974. That calculation is dependent on the business selling for the area's average multiple. Actual cash flow multiples are based on business specifics.
In case you were wondering what typical cash flows are for a business in St. Paul, BizBuySell.com reports that the median cash flow for St. Paul area businesses was $75,000 in Q3 2009. In Q3 2008, St. Paul cash flow multiples averaged 4.19 and the median cash flow was $78,688.
Number of St. Paul Businesses for Sale in the Dataset
The study data comprised 312 listings in the Minneapolis-St. Paul-Bloomington, MN-WI metro area. Many of the businesses in the dataset are outside of St. Paul, but they are in the area and so are probably representative of St. Paul business valuations.
One year ago, in Q3 2008, the BizBuySell.com dataset for St. Paul spanned 307 listings. In a market where you would think fewer business owners would be selling, it's a bit surprising to see more St. Paul business-for-sale listings.
Can I Sell My St. Paul, MN Business Now?
As long as you maintain confidentiality while selling a business, there's little harm in putting a business up for sale. Sure, it takes a lot of work, but investing in getting ready to sell now will have a payoff whenever you decide to actually sell. By simply listing a business for sale, and doing it now, you can get a feel for the market. Remember, you can always say no thanks to an offer you don't like. This helpful tip on buying a business comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.
Business Valuations for St. Paul, MN 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 published quarterly. If you find these trends interesting, take a moment to visit BizBuySell.com Insights Report for additional information.
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