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Biz-for-Sale Asking Prices Dip in 3Q |
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From the latest Issue of IBBA News.
As reported in Crain's Chicago Business
Asking prices for Chicago-area businesses are down from the same period last year.
That's one of the findings from the latest analysis of local buying and selling trends conducted by BizBuySell.com, an online business brokerage.
The company's third-quarter 2009 data is based on 535 Chicago-area businesses listed at BizBuySell.com. Those listings include listings from local business brokers, as well as "for sale by owner" listings that have been listed by the business owner without the assistance of a business broker.
Here are some of the highlights:
• If you want to buy a business in Chicago, the current median asking price of businesses for sale is exactly $250,000.
• One year ago, at the end of Q3 2008, the median asking price for businesses in Chicago was $292,000.
• The Q3 2009 listed businesses in the Chicago area had a median revenue of $449,865, up from $430,000 at this same time last year.
• The median cash flow, meaning the money that comes out of the business over the course of a year, is $92,694, versus median cash flows of $101,344 last year.
What's happening outside Chicago?
Nationally, the business-for-sale marketplace seems to have hit bottom and is turning around, according to BizBuySell's analysis.
Year over year, BizBuySell is seeing a 24% drop in closed business-for-sale transactions. That's an improvement from last quarter, when closed transactions had declined 50% year over year.
BizBuySell says its data suggests that sellers are dropping their pricing, which is leading to greater alignment between sellers and buyers. The median price for closed transactions, for example, declined to $149,000 from $189,500 year over year. BizBuySell is seeing similar downward trends in ask prices, sale-to-ask ratios, revenue multiples and cash flow multiples.
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