A report from BizBuySell.com, an online marketplace for business sales, suggests that sellers are dropping their asking prices for established businesses.

Based on a summary of 297 listings in the San Francisco area at the end of the third quarter, BizBuySell says the current median asking price is $225,000. That compares to a median asking price of $250,000 the same time a year ago.

The median revenue of these currently-listed businesses was $425,000, up from $420,000 at this time last year. But median cash flow -- the money that can be drawn out of a business over the course of a year -- fell to $91,950 at the end of third quarter 2009 versus $99,295 at the same period in 2008.

According to the summary, owners in the San Francisco area typically seek an average revenue multiple of .71 (down from .77 last September) and a cash flow multiple of 2.99 (versus 3.29 a year ago).

Those data all pertain to listings.

BizBuySell also analyzed 10 closed transactions in this market that were reported by brokers during the third quarter of 2009. Those businesses went for a median sale price of $133,500. On average, this was 0.81 of the asking price. The businesses had a median revenue of $278,991 and a median cash flow of $116,591. Business buyers paid on average 0.52 times revenue and 1.68 times cash flow.

By way of comparison, in the third quarter of 2008, brokers reported 21 closed transactions in this market to BizBuySell. Businesses went for a median sale price of $230,000. On average, this was 0.89 of the ask price. These businesses had a median revenue of $300,000 and a median cash flow of $83,256. Business buyers paid on average 0.97 times revenue and 3.56 times cash flow.

By way of disclosure, SFGate.com has an advertising relationship with BizBuySell.com.

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