September 13, 2020  
 
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Q3 2009 Business Valuation Data

 

 

Sell My Wichita, KS Business

Every quarter, BizBuySell.com publishes business valuation data, and we now have their latest Wichita, Kansas statistics on business valuations for Third Quarter 2009.

Median Ask Prices for Wichita, KS Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Wichita, KS metro area for the last 11 quarters.

Quarter

Median Ask

Q1 2007

$675,000

Q2 2007

$275,000

Q3 2007

$275,000

Q4 2007

$275,000

Q1 2008

$373,000

Q2 2008

$192,500

Q3 2008

$205,000

Q4 2008

$186,800

Q1 2009

$231,500

Q2 2009

$244,000

Q3 2009

$287,500

As shown in the table, Wichita business-for-sale listings in Q3 2009 had a median asking price of $287,500.

That compares to a median ask price of $205,000 in Q3 2008. With median asking prices for Wichita, KS 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 Wichita, KS Businesses

Here is how median revenue multiples are changing in the Wichita area, based on BizBuySell.com's data.

Quarter

Revenue Multiple

Q1 2007

0.76

Q2 2007

0.82

Q3 2007

0.90

Q4 2007

0.85

Q1 2008

0.88

Q2 2008

0.77

Q3 2008

0.79

Q4 2008

0.74

Q1 2009

0.80

Q2 2009

0.91

Q3 2009

0.93

In the Wichita, KS metro area, 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 area of the country.

In other words, a business that has revenues of $150,000 might list for $139,817. Keep in mind that this is only an average for revenue multiples in Wichita 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 Wichita business-for-sale listings was $480,862 in Q3 2009.

As a reference point, the Q3 2008 revenue multiple was 0.79 and the median revenue for listed Wichita businesses was $383,000.

Cash Flow Multiples for Wichita, KS Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

3.07

Q2 2007

3.44

Q3 2007

3.44

Q4 2007

3.41

Q1 2008

3.66

Q2 2008

3.88

Q3 2008

3.71

Q4 2008

3.05

Q1 2009

3.30

Q2 2009

3.50

Q3 2009

3.57

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 Wichita, KS metro area was 3.57.

So, a company with cash flows of $110,000 might list for $392,624. 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 Wichita, BizBuySell.com reports that the median cash flow for Wichita area businesses was $113,696 in Q3 2009. In Q3 2008, Wichita cash flow multiples averaged 3.71 and the median cash flow was $62,000.

Number of Wichita Businesses for Sale in the Dataset

The study data comprised 28 listings in the Wichita, KS metro area. As such, some of the businesses used to derive the median valuation might be outside of Wichita, but they are in the area and so are likely representative of Wichita business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for Wichita spanned 28 listings. In a market where you would think fewer business owners would be selling, it's a bit surprising to see the same number of Wichita business-for-sale listings.

Can I Sell My Wichita, KS 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 Wichita, KS 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 additional information.

 

 

 

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