Q3 2009 Business Valuation Data

Sell My Sunnyvale, CA Business

We just received the latest Sunnyvale, California business-for-sale statistics.

Median Ask Prices for Sunnyvale, CA Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for companies in the San Jose-Sunnyvale-Santa Clara, CA metro area for the last 11 quarters.

Quarter
Median Ask
Q1 2007
$189,500
Q2 2007
$239,000
Q3 2007
$265,000
Q4 2007
$250,000
Q1 2008
$249,000
Q2 2008
$249,500
Q3 2008
$250,000
Q4 2008
$260,000
Q1 2009
$260,000
Q2 2009
$295,000
Q3 2009
$275,000

As shown in the table, Sunnyvale business-for-sale listings in Q3 2009 had a median asking price of $275,000.

That compares to a median ask price of $250,000 in Q3 2008. Because the median ask price for businesses for sale in Sunnyvale has risen year over year, we can conclude that many smaller firms in Sunnyvale are holding off on selling.

Revenue Multiples for Sunnyvale, CA Businesses

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

Quarter
Revenue Multiple
Q1 2007
0.85
Q2 2007
0.79
Q3 2007
0.71
Q4 2007
0.68
Q1 2008
0.74
Q2 2008
0.78
Q3 2008
0.80
Q4 2008
0.82
Q1 2009
0.88
Q2 2009
0.89
Q3 2009
0.83

In the San Jose-Sunnyvale-Santa Clara, CA metro area, small companies will typically sell for 0.83 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 firm with revenues of $150,000 might list for $123,868. Remember, however, that this is strictly an average for revenue multiples in the area. Some businesses will have higher revenue multiples and others will have lower revenue multiples.

According to BizBuySell.com, the median revenues for its Sunnyvale business-for-sale listings was $415,743 in Q3 2009.

To put this in perspective, the Q3 2008 revenue multiple was 0.80 and the median revenue for listed Sunnyvale businesses was $428,094.

Cash Flow Multiples for Sunnyvale, CA Businesses

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

Quarter
Median Cash
Flow Multiple
Q1 2007
2.91
Q2 2007
3.23
Q3 2007
3.00
Q4 2007
2.98
Q1 2008
3.35
Q2 2008
3.28
Q3 2008
3.42
Q4 2008
3.47
Q1 2009
3.60
Q2 2009
3.52
Q3 2009
3.50

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 San Jose-Sunnyvale-Santa Clara, CA metro area was 3.50.

So, a firm with cash flows of $110,000 might list for $384,937. 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 Sunnyvale, BizBuySell.com reports that the median cash flow for Sunnyvale area businesses was $106,992 in Q3 2009. In Q3 2008, Sunnyvale cash flow multiples averaged 3.42 and the median cash flow was $104,158.

Number of Sunnyvale Businesses for Sale in the Dataset

The study data comprised 146 listings in the San Jose-Sunnyvale-Santa Clara, CA metro area. Many of the businesses in the dataset are outside of Sunnyvale, but they are in the area and so are probably representative of Sunnyvale business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for Sunnyvale spanned 166 listings. The downward trend in the number of Sunnyvale business-for-sale listings is indicative of the current down economy.

Can I Sell My Sunnyvale, CA Business Now?

Selling a business is something you should start preparing to do long before you actually want to sell a business. A common mistake is to wait too long to learn about what it takes to sell a business for a premium price. Even if you don't plan on pursuing an exit for several years, you should start the process now. This useful tip for selling a business comes from Domenic Rinaldi, managing partner of Sun Acquisitions, a leading business brokerage firm.

Business Valuations for Sunnyvale, CA 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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