September 30, 2020  
 
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Q3 2009 Business Valuation Data

 

 

Sell My West Allis, WI Business

We just received the latest West Allis, Wisconsin business valuation data for Third Quarter 2009.

Median Ask Prices for West Allis, WI Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Milwaukee-Waukesha-West Allis, WI metro area for the last 11 quarters.

Quarter

Median Ask

Q1 2007

$362,500

Q2 2007

$220,000

Q3 2007

$332,500

Q4 2007

$335,000

Q1 2008

$392,500

Q2 2008

$395,000

Q3 2008

$374,950

Q4 2008

$367,450

Q1 2009

$300,000

Q2 2009

$330,000

Q3 2009

$275,000

As you can see from the chart above, West Allis business-for-sale listings in Q3 2009 had a median asking price of $275,000.

That compares to a median ask price of $374,950 in Q3 2008. Given that West Allis, WI median business asking prices appear to be dropping, it suggests that selling West Allis businesses may be lowering their prices to make their businesses more attractive to buyers.

Revenue Multiples for West Allis, WI Businesses

Here is how median revenue multiples are trending in the West Allis area, based on BizBuySell.com's data.

Quarter

Revenue Multiple

Q1 2007

1.01

Q2 2007

1.02

Q3 2007

1.13

Q4 2007

0.97

Q1 2008

1.04

Q2 2008

1.11

Q3 2008

1.04

Q4 2008

1.02

Q1 2009

1.04

Q2 2009

1.00

Q3 2009

0.99

In the Milwaukee-Waukesha-West Allis, WI metro area, small businesses will typically sell for 0.99 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 firm with revenues of $150,000 might list for $147,792. Remember, however, that this is in fact an average for revenue multiples in the area. Some entities will have higher revenue multiples and others will have lower revenue multiples.

According to BizBuySell.com, the median revenues for its West Allis business-for-sale listings was $425,000 in Q3 2009.

To put this in perspective, the Q3 2008 revenue multiple was 1.04 and the median revenue for listed West Allis businesses was $511,597.

Cash Flow Multiples for West Allis, WI Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

3.92

Q2 2007

3.65

Q3 2007

3.77

Q4 2007

3.56

Q1 2008

3.74

Q2 2008

4.12

Q3 2008

4.32

Q4 2008

4.42

Q1 2009

4.49

Q2 2009

4.28

Q3 2009

4.28

As you probably know, cash flow multiples are another common way to value a business.

For Q3 2009, the average cash flow multiple for listed businesses in the Milwaukee-Waukesha-West Allis, WI metro area was 4.28.

So, a firm with cash flows of $110,000 might list for $471,170. 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 West Allis, BizBuySell.com determined that the median cash flow for West Allis area businesses was $75,482 in Q3 2009. In Q3 2008, West Allis cash flow multiples averaged 4.32 and the median cash flow was $102,572.

Number of West Allis Businesses for Sale in the Dataset

The study data comprised 91 listings in the Milwaukee-Waukesha-West Allis, WI metro area. Many of the businesses in the dataset are outside of West Allis, but they are close by and so are likely representative of West Allis business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for West Allis spanned 96 listings. The downward trend in the number of West Allis business-for-sale listings is indicative of the current down economy.

Should I Sell My West Allis, WI Business Now?

You should consider selling your business if you think a buyer will be willing to pay a price that you are happy with. The economy should not be the major determining factor. In fact, some countercyclical companies sell for more in a down economy than they do in an up economy. This tip for selling a business was provided by Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for West Allis, WI 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 published quarterly. If you find these trends interesting, take a moment to visit BizBuySell.com Insights Report for more information.

 

 

 

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