The number of small and mid-market California business sold in October increased substantially from the figures posted for the past few months. We hope this marks the beginning of an upward trend into the rest of the year and in 2010.
The total of 1,314 closed escrows last month compares to under-1,000 figures for three of the past four months. And the increase comes at a time when this good news is apparent in other leading economic indicators.
A key factor in the boosted sales activity is increased availability of purchase funds from small business lenders. And we believe the SBA can be thanked for that. Earlier this year, the federal agency--with funds directed to it from the American Relief and Recovery Act--instituted several rule changes to get its preferred lenders back into the market, making loans to aid in small business purchases. Among the changes was the suspension of loan application fees, increasing its guarantees up to 90% of the value of a loan, and raising the amount of goodwill permissible in a loan it will underwrite.
Also contributing to the positive direction for
sales of small businesses is the increasing willingness of people to move forward with their plans for buying and selling. There has been a high level of uncertainty about the economy among entrepreneurs since the problems on Wall Street were reported, beginning last year. Now that buyers and sellers have determined that the economy has not gone over the cliff, they are more inclined to act.
Buyers who are serious about owning a business are starting to make decisions regarding what they want and to make purchase offers. And sellers are coming to the realization that if they are ready to sell, there may be no benefit in waiting another six months or so.
October small and mid-sized business sales, by California county are as follows:
Alameda: 62, Amador: 1, Butte: 5, Calaveras: 1, Contra Costa: 42, El Dorado: 8, Fresno: 37, Imperial: 1, Kern: 18, Kings: 1, Lake: 1, Lassen: 1, Los Angeles: 379, Madera: 1, Marin: 5, Mendocino: 1, Merced: 7, Mono: 3, Monterey: 13, Napa: 3, Nevada: 6, Orange: 99, Placer: 11, Riverside: 23, Sacramento: 64, San Bernardino: 58, San Diego: 129, San Francisco: 61, San Joaquin: 10, San Luis Obispo: 14, San Mateo: 32, Santa Barbara: 25, Santa Clara: 59, Santa Cruz: 7, Shasta: 11, Solano: 14, Sonoma: 26, Stanislaus: 16, Sutter: 7, Tehama: 1, Trinity: 1, Tulare: 9, Tuolumne: 3, Ventura: 30, Yolo: 7, Yuba: 1
About: Peter Siegel is the Founder & President of BizBen.com. He consults with business sellers, business brokers, and agents on marketing & advertising strategies when selling businesses and has written three books on how to buy & sell small businesses. If you have a question about the buying or selling a business process please feel free to phone Peter Siegel at: 866-270-6278.
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Posted on November 4, 2009 | 
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