September 30, 2020  
 
  Articles for Entrepreneurs  
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Q3 2009 Business Valuation Data

 

 

Sell My Tampa, FL Business

BizBuySell.com has just released its Tampa, Florida business valuation data for Third Quarter 2009.

Median Ask Prices for Tampa, FL Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses for sale in the Tampa-St. Petersburg-Clearwater, FL metro area for the last 11 quarters.

Quarter

Median Ask

Q1 2007

$195,000

Q2 2007

$189,000

Q3 2007

$200,000

Q4 2007

$200,000

Q1 2008

$225,000

Q2 2008

$225,000

Q3 2008

$212,250

Q4 2008

$205,000

Q1 2009

$199,000

Q2 2009

$195,000

Q3 2009

$189,000

As shown in the table, Tampa business-for-sale listings in Q3 2009 had a median asking price of $189,000.

That compares to a median ask price of $212,250 in Q3 2008. Given that Tampa, FL median business asking prices appear to be dropping, it suggests that selling Tampa businesses may be lowering their prices to make their businesses more attractive to buyers.

Revenue Multiples for Tampa, FL Businesses

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

Quarter

Revenue Multiple

Q1 2007

0.87

Q2 2007

0.89

Q3 2007

0.91

Q4 2007

0.91

Q1 2008

0.98

Q2 2008

0.96

Q3 2008

0.92

Q4 2008

0.89

Q1 2009

0.94

Q2 2009

0.96

Q3 2009

0.93

In the Tampa-St. Petersburg-Clearwater, FL metro area, small companies will typically sell for 0.93 times the selling company's revenues. As shown in the chart above, that 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 $139,225. Remember, however, that this is just an average for revenue multiples in Tampa 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 Tampa business-for-sale listings was $317,843 in Q3 2009.

In terms of trending year over year, the Q3 2008 revenue multiple was 0.92 and the median revenue for listed Tampa businesses was $350,000.

Cash Flow Multiples for Tampa, FL Businesses

Here is how cash flow multiples are trending in the Tampa area, based on BizBuySell.com's quarterly reports.

Quarter

Median Cash
Flow Multiple

Q1 2007

2.95

Q2 2007

2.99

Q3 2007

3.31

Q4 2007

3.34

Q1 2008

3.45

Q2 2008

3.39

Q3 2008

3.28

Q4 2008

3.33

Q1 2009

3.45

Q2 2009

3.50

Q3 2009

3.40

As you probably know, cash flow multiples are another popular technique to value a business.

For Q3 2009, the average cash flow multiple for listed businesses in the Tampa-St. Petersburg-Clearwater, FL metro area was 3.40.

So, a firm with cash flows of $110,000 might list for $374,013. That's only if the firm complies with the local average. Most businesses will not conform to industry- or area averages.

In case you were wondering what typical cash flows are for a business in Tampa, BizBuySell.com reports that the median cash flow for Tampa area businesses was $77,611 in Q3 2009. In Q3 2008, Tampa cash flow multiples averaged 3.28 and the median cash flow was $86,025.

Number of Tampa Businesses for Sale in the Dataset

The study data comprised 829 listings in the Tampa-St. Petersburg-Clearwater, FL metro area. Many of the businesses in the dataset are outside of Tampa, but they are in the area and so are likely representative of Tampa business valuations.

In Q3 2008, just one year ago, there were 998 Tampa listings in the BizBuySell.com dataset. As a result of the recession, fewer Tampa business owners are selling because they hope to weather the storm and sell after the economy turns around.

Can I Sell My Tampa, FL 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 Tampa, FL Businesses

If you are considering 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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