September 29, 2020  
 
  Articles for Entrepreneurs  
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Q3 2009 Business Valuation Data

 

 

Sell My West Hartford, CT Business

We just received the latest West Hartford, Connecticut small business valuation trend data for Third Quarter 2009.

Median Ask Prices for West Hartford, CT 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 Hartford-West Hartford-East Hartford, CT metro area for the last 11 quarters.

Quarter

Median Ask

Q1 2007

$195,000

Q2 2007

$174,950

Q3 2007

$175,000

Q4 2007

$177,000

Q1 2008

$175,000

Q2 2008

$179,000

Q3 2008

$175,000

Q4 2008

$179,500

Q1 2009

$200,000

Q2 2009

$200,000

Q3 2009

$190,000

As you can see from the chart above, West Hartford business-for-sale listings in Q3 2009 had a median asking price of $190,000.

That compares to a median ask price of $175,000 in Q3 2008. With median asking prices for West Hartford, CT businesses for sale trending up, we can conclude that only businesses that know they can command a premium price are willing to sell in this tough market.

Revenue Multiples for West Hartford, CT Businesses

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

Quarter

Revenue Multiple

Q1 2007

0.64

Q2 2007

0.63

Q3 2007

0.62

Q4 2007

0.62

Q1 2008

0.63

Q2 2008

0.66

Q3 2008

0.62

Q4 2008

0.61

Q1 2009

0.62

Q2 2009

0.59

Q3 2009

0.59

In the Hartford-West Hartford-East Hartford, CT metro area, small companies will typically sell for 0.59 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 $87,772. Remember, however, that this is simply 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 Hartford business-for-sale listings was $418,489 in Q3 2009.

To give this some context, the Q3 2008 revenue multiple was 0.62 and the median revenue for listed West Hartford businesses was $360,000.

Cash Flow Multiples for West Hartford, CT Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

2.94

Q2 2007

2.57

Q3 2007

2.67

Q4 2007

2.80

Q1 2008

2.87

Q2 2008

2.93

Q3 2008

2.80

Q4 2008

2.74

Q1 2009

3.03

Q2 2009

2.80

Q3 2009

2.80

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 Hartford-West Hartford-East Hartford, CT metro area was 2.80.

So, a company with cash flows of $110,000 might list for $308,296. 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 Hartford, BizBuySell.com found that the median cash flow for West Hartford area businesses was $95,264 in Q3 2009. In Q3 2008, West Hartford cash flow multiples averaged 2.80 and the median cash flow was $90,000.

Number of West Hartford Businesses for Sale in the Dataset

The study data comprised 196 listings in the Hartford-West Hartford-East Hartford, CT metro area. Many of the businesses in the dataset are outside of West Hartford, but they are in the area and so are likely representative of West Hartford business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for West Hartford spanned 215 listings. The downward trend in the number of West Hartford business-for-sale listings is indicative of the current down economy.

Should I Sell My West Hartford, CT Business Now?

The market is turning around and it's a great time to sell. Still, you may have to be creative. For example, with credit still relatively tight, you might want to consider offing seller financing to a buyer. This will improve your odds of closing a business-for-sale transaction. This helpful tip comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for West Hartford, CT Businesses

If you are thinking about 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 additional information.

 

 

 

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