September 24, 2020  
 
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Q3 2009 Business Valuation Data

 

 

Sell My Winston-Salem, NC Business

Every quarter, BizBuySell.com publishes business valuation data, and we now have their latest Winston-Salem, North Carolina business valuation data for Third Quarter 2009.

Median Ask Prices for Winston-Salem, NC Businesses

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

Quarter

Median Ask

Q1 2007

$360,000

Q2 2007

$264,950

Q3 2007

$250,000

Q4 2007

$250,000

Q1 2008

$395,000

Q2 2008

$325,000

Q3 2008

$240,000

Q4 2008

$225,000

Q1 2009

$210,000

Q2 2009

$195,000

Q3 2009

$155,000

As you can see from the chart above, Winston-Salem business-for-sale listings in Q3 2009 had a median asking price of $155,000.

That compares to a median ask price of $240,000 in Q3 2008. The lower median asking price in last quarter suggests that Winston-Salem, NC sellers are dropping their asking prices in light of market conditions. This is making it possible for more business-for-sale transactions to close.

Revenue Multiples for Winston-Salem, NC Businesses

Here is how median revenue multiples are trending in the Winston-Salem area, based on BizBuySell.com's quarterly reports.

Quarter

Revenue Multiple

Q1 2007

1.65

Q2 2007

0.72

Q3 2007

0.77

Q4 2007

0.77

Q1 2008

0.80

Q2 2008

0.79

Q3 2008

0.57

Q4 2008

0.53

Q1 2009

0.58

Q2 2009

0.57

Q3 2009

0.52

In the Winston-Salem, NC metro area, businesses will usually sell for 0.52 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 $78,416. Remember, however, that this is simply an average for revenue multiples in Winston-Salem 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 Winston-Salem business-for-sale listings was $429,936 in Q3 2009.

To put this in perspective, the Q3 2008 revenue multiple was 0.57 and the median revenue for listed Winston-Salem businesses was $512,000.

Cash Flow Multiples for Winston-Salem, NC Businesses

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

Quarter

Median Cash
Flow Multiple

Q1 2007

4.82

Q2 2007

2.91

Q3 2007

3.40

Q4 2007

3.45

Q1 2008

3.63

Q2 2008

3.15

Q3 2008

2.75

Q4 2008

2.77

Q1 2009

2.89

Q2 2009

2.96

Q3 2009

2.95

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 Winston-Salem, NC metro area was 2.95.

So, a company with cash flows of $110,000 might list for $325,047. That's only if the firm complies with the local average. Most businesses will not conform to industry- or area averages.

In case you were wondering what typical cash flows are for a business in Winston-Salem, BizBuySell.com found that the median cash flow for Winston-Salem area businesses was $70,645 in Q3 2009. In Q3 2008, Winston-Salem cash flow multiples averaged 2.75 and the median cash flow was $97,757.

Number of Winston-Salem Businesses for Sale in the Dataset

The study data comprised 14 listings in the Winston-Salem, NC metro area. Many of the businesses in the dataset are outside of Winston-Salem, but they are in the area and so are likely representative of Winston-Salem business valuations.

In Q3 2008, just one year ago, there were 21 Winston-Salem listings in the BizBuySell.com dataset. As a result of the recession, fewer Winston-Salem business owners are selling because they hope to weather the storm and sell after the economy turns around.

Can I Sell My Winston-Salem, NC Business Now?

You can absolutely sell in this market. Deals are getting done every day. You just have to structure the deal properly. In this down economy, performance based pricing is very popular. When buyers and sellers differ on valuations, tools such as earnouts, equity ownership or profit sharing can bridge the valuation gap. In effect, this is a deferred purchase price, but it's a way to get a deal done in a tough economic climate. This helpful tip comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Winston-Salem, NC Businesses

If you are contemplating buying a business or selling a business and would like to determine how much a business is worth, 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 more information.

 

 

 

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