September was the slowest month of the year for small business sales in California, with only 1,187 companies changing hands--a decline of 39% compared to the 1,960 completed deals recorded in September, 2007.
A combination of factors are responsible for the decrease - slowdowns were apparent in both new business-for-sale listings and offers to purchase beginning in late July, as a result of events like the Olympic Games and the political party conventions.
Also in September lending tightened up, as it has the past several weeks, putting a downward trend to people's buying and selling plans. The Labor Day Holiday and its focus on back-to-school preparations is traditionally a time when we see less business activity also.
With all the economic troubles on Wall Street and the effect on Main Street, I don't anticipate that most buyers and sellers will be moving forward with too many deals in the immediate future. People are keeping their hands in their pockets right now - many people are waiting to see what's going to happen next and then make a move in the market.
Nearly all of California's counties recorded fewer completed transactions in September 2008, compared with the prior month and with September 2007. Dramatic declines were noted in Los Angeles County with only 278 deals last month, contrasted with 433 in August, and 650 during September of last year; San Francisco, where 58 deals closed last month versus 100 in August 2008 and 99 in September 2007; and Santa Clara, chalking up only 39 deals in September, compared to the 86 closings in August this year and 114 completed escrows last September.
The number of small business sales completed in September 2008, shown by California county, as follows:
Alameda 66; Amador 1; Butte 1; Contra Costa 11; El Dorado 6; Fresno 28; Humboldt 1; Imperial 7; Kern 26; Kings 3; Los Angeles 278; Madera 1; Marin 9; Mendocino 1; Merced 1; Monterey 14; Napa 6; Nevada 4; Orange 152; Placer 11; Riverside 22; Sacramento 45; San Bernardino 58; San Diego 186; San Francisco 58; San Joaquin 23; San Luis Obispo 15; San Mateo 9; Santa Barbara 12; Santa Clara 39; Santa Cruz 5; Solano 14; Sonoma 14; Stanislaus 18; Sutter 3; Tulare 18; Ventura 14; Yolo 7.
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