September 22, 2020  
 
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Q3 2009 Business Valuation Data

 

 

Sell My Troy, NY Business

Every quarter, BizBuySell.com publishes business valuation data, and we now have their latest Troy, New York business valuation data for Third Quarter 2009.

Median Ask Prices for Troy, NY Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Albany-Schenectady-Troy, NY metro area for the last 11 quarters.

Quarter

Median Ask

Q1 2007

$399,000

Q2 2007

$450,000

Q3 2007

$499,000

Q4 2007

$524,500

Q1 2008

$479,000

Q2 2008

$499,000

Q3 2008

$496,500

Q4 2008

$495,000

Q1 2009

$444,950

Q2 2009

$379,000

Q3 2009

$369,500

As you can see from the chart above, Troy business-for-sale listings in Q3 2009 had a median asking price of $369,500.

That compares to a median ask price of $496,500 in Q3 2008. Given that Troy, NY median business asking prices appear to be dropping, it suggests that selling Troy businesses may be lowering their prices to make their businesses more attractive to buyers.

Revenue Multiples for Troy, NY Businesses

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

Quarter

Revenue Multiple

Q1 2007

1.70

Q2 2007

2.14

Q3 2007

1.86

Q4 2007

1.88

Q1 2008

1.90

Q2 2008

1.85

Q3 2008

1.86

Q4 2008

2.02

Q1 2009

1.92

Q2 2009

1.74

Q3 2009

1.72

In the Albany-Schenectady-Troy, NY metro area, small companies will typically sell for 1.72 times the selling company's revenues. As the table above indicates, this was 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 $257,799. Remember, however, that this is just an average for revenue multiples in Troy and surrounding communities. Some companies will have higher revenue multiples and others will have lower revenue multiples.

According to BizBuySell.com, the median revenues for its Troy business-for-sale listings was $400,000 in Q3 2009.

To put this in perspective, the Q3 2008 revenue multiple was 1.86 and the median revenue for listed Troy businesses was $420,000.

Cash Flow Multiples for Troy, NY Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

3.49

Q2 2007

4.46

Q3 2007

4.27

Q4 2007

4.21

Q1 2008

4.30

Q2 2008

4.34

Q3 2008

4.29

Q4 2008

4.94

Q1 2009

4.97

Q2 2009

4.59

Q3 2009

4.49

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 Albany-Schenectady-Troy, NY metro area was 4.49.

So, a business with cash flows of $110,000 might list for $494,208. That's only if the firm complies with the local average. Actual cash flow multiples are based on business specifics.

If you are interested in what cash flows are for a business in Troy, BizBuySell.com reports that the median cash flow for Troy area businesses was $130,000 in Q3 2009. In Q3 2008, Troy cash flow multiples averaged 4.29 and the median cash flow was $140,307.

Number of Troy Businesses for Sale in the Dataset

The study data comprised 73 listings in the Albany-Schenectady-Troy, NY metro area. As such, some of the businesses used to derive the median valuation might be outside of Troy, but they are in the area and so are probably representative of Troy business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for Troy spanned 70 listings. In a market where you would think fewer business owners would be selling, it's a bit surprising to see more Troy business-for-sale listings.

Can I Sell My Troy, NY 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 Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Troy, NY 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 suggest you try 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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