September 21, 2020  
 
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Q3 2009 Business Valuation Data

 

 

Sell My Tucson, AZ Business

Every quarter, BizBuySell.com publishes business valuation data, and we now have their latest Tucson, Arizona business-for-sale statistics.

Median Ask Prices for Tucson, AZ Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for companies in the Tucson, AZ metro area for the last 11 quarters.

Quarter

Median Ask

Q1 2007

$230,000

Q2 2007

$225,000

Q3 2007

$235,000

Q4 2007

$250,000

Q1 2008

$239,000

Q2 2008

$215,000

Q3 2008

$225,000

Q4 2008

$245,000

Q1 2009

$250,000

Q2 2009

$200,000

Q3 2009

$200,000

As you can see from the chart above, Tucson business-for-sale listings in Q3 2009 had a median asking price of $200,000.

That compares to a median ask price of $225,000 in Q3 2008. Given that Tucson, AZ median business asking prices appear to be dropping, it suggests that selling Tucson businesses may be lowering their prices to make their businesses more attractive to buyers.

Revenue Multiples for Tucson, AZ Businesses

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

Quarter

Revenue Multiple

Q1 2007

0.85

Q2 2007

0.84

Q3 2007

0.90

Q4 2007

0.90

Q1 2008

0.88

Q2 2008

0.85

Q3 2008

0.85

Q4 2008

0.87

Q1 2009

0.96

Q2 2009

1.00

Q3 2009

1.00

In the Tucson, AZ metro area, small companies will typically sell for 1.00 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 business that has revenues of $150,000 might list for $149,900. Remember, however, that this is just an average for revenue multiples in the area. Some firms will have higher revenue multiples and others will have lower revenue multiples.

According to BizBuySell.com, the median revenues for its Tucson business-for-sale listings was $309,000 in Q3 2009.

To put this in perspective, the Q3 2008 revenue multiple was 0.85 and the median revenue for listed Tucson businesses was $370,449.

Cash Flow Multiples for Tucson, AZ Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

3.51

Q2 2007

3.30

Q3 2007

3.63

Q4 2007

3.59

Q1 2008

3.48

Q2 2008

3.52

Q3 2008

3.48

Q4 2008

3.50

Q1 2009

3.52

Q2 2009

3.58

Q3 2009

3.48

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

For Q3 2009, the average cash flow multiple for businesses listed in the Tucson, AZ metro area was 3.48.

So, a business with cash flows of $110,000 might list for $383,218. 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 Tucson, BizBuySell.com found that the median cash flow for Tucson area businesses was $80,000 in Q3 2009. In Q3 2008, Tucson cash flow multiples averaged 3.48 and the median cash flow was $83,549.

Number of Tucson Businesses for Sale in the Dataset

The study data comprised 159 listings in the Tucson, AZ metro area. As such, some of the businesses used to derive the median valuation might be outside of Tucson, but they are nearby and so are probably representative of Tucson business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for Tucson spanned 205 listings. The downward trend in the number of Tucson business-for-sale listings is indicative of the current down economy.

Should I Sell My Tucson, AZ Business Now?

It is a good time to sell a business. The market is turning and strategic buyers are very active. Many strategic buyers are flush with cash and see a great opportunity to grow market share and top-line revenues. For a selling SMB business owner, there is plenty of opportunity to cash out at a premium price. This advice on selling a business comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Tucson, AZ Businesses

If you are contemplating buying a business or selling a business and would like to get an estimated company valuation, 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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