The 2008 Data Is In On Sales Price Numbers

BizBuySell.com has released its Quarter One 2008 data on what small businesses are selling for. After crunching the numbers on over 40,000 business-for-sale listings, BizBuySell has determined that the median asking price for businesses for sale in the United States now stands at $250,000. In Q4 2007, the median asking price for businesses in the United States was exactly $255,000. The Q1 listed businesses had a median revenue of $400,000. In Q4 2007, the median revenue was the same. The median cash flow, meaning the money that comes out of the business over the course of a year, is $99,182, versus $100,000 in the previous quarter.

According to BizBuySell's analysis, business owners in the United States will typically ask for, on average, a revenue multiple of .92 and a cash flow multiple of 3.47. Business buyers paid on average 0.73 times revenue and 2.79 times cash flow, suggesting that sellers accept significant discounts on their asking prices as part of their negotiations with business buyers. The general trend is downward pressure on business valuations. This is due to baby boomers selling and a tight market for credit.

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