A total of 1,307 small and mid-sized businesses changed hands last month in California, representing a gain of about 30% over the 1,004 deals closed in September. But the tally was off by about 5.6% from the 1,384 completed transactions recorded in October 2010, according to the sales count compiled by the California Secretary of State and reported by the BizBen Index.
The swings in activity are a reminder that California’s small business sales marketplace still is recovering from the significant drop in completed transactions as a result of the financial crisis in 2008.
Sales figures in most of the California’s major markets reflected the pattern noted throughout the state for October. Los Angeles County registered 368 completed escrows last month, an increase of nearly 37% over the September figures. Orange County’s sales growth in October was nearly 14%, at 132, compared to the prior month; the San Diego County deal count last month reached 102, topping the total for September by almost 23%.
Northern California metropolitan areas also saw a boost in October activity compared to the prior month: Santa Clara County recorded one of its best months in the past two years with 80 deals; San Francisco’s transactions grew from the September figure by over 25% to 49 transactions; Sacramento recorded 40 closed escrows, slightly ahead of the 38 that were signed in September. Alameda County registered 51 completed transactions in October, up from 38 deals the month before.
Despite the continuing mood of uncertainty throughout the economy, the buyers, sellers, business brokers and loan specialists in the state are generally bullish about their prospects for business success, and are getting more resourceful at overcoming difficulties so they can complete transactions.
We’re noticing that deals being finalized in 2011 are often more complex, sometimes more creative, than the contracts ratified during the past several years. The pricing strategy for deals--with earn outs and partial sales--is changing, and it has become more challenging to arrange the financing needed to fund business transfer agreements. There’s money available, but accessing it is not always easy.
The October sales totals, by county, listed on the BizBen index at
http://www.bizben.com/stats/stats-monthly-oct.php are as follows:
Alameda: 51, Amador: 1, Butte: 6, Contra Costa: 28, El Dorado: 11, Fresno: 48, Humboldt: 1, Imperial: 4, Kern: 27, Lassen: 1, Los Angeles: 368, Madera: 3, Marin: 8, Merced: 11, Monterey: 13, Napa: 5, Nevada: 5, Orange: 132, Placer: 11, Riverside: 55, Sacramento: 40, San Bernardino: 50, San Diego: 102, San Francisco: 49, San Joaquin: 32, San Luis Obispo: 22, San Mateo: 26, Santa Barbara: 4, Santa Clara: 80, Santa Cruz: 14, Shasta: 6, Solano: 9, Sonoma: 20, Stanislaus: 12, Sutter: 4, Trinity: 1, Tulare: 19, Tuolumne: 1, Ventura: 15, Yolo: 12.
For the past 15 years the BizBen Index has collected and reported important data about California’s small businesses for sale market.
About the Author: Since 1994 Founder and CEO of BizBen.com,
Peter Siegel, MBA has been consulting California small business owners, business buyers, business brokers & agents on the best ways to sell or buy California small businesses. Check out his FREE online webinars, two books on buying and selling a business, and numerous articles published in local media throughout California. Peter Siegel, MBA can be reached direct at 866-270-6278.
Posted on November 2, 2011 | 
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