A total of 986 small and mid-market businesses changed hands in California last month, a decline of about 10% from the 1,095 deals completed in April 2010. The drop was even more dramatic, nearly 33%, compared to the previous month (March 2011), which posted 1,444 transactions, the best monthly sales results in nearly two years.
To some extent, the slower sales last month is a reflection of the measured pace at which we see the entire economy growing. In many sectors of the consumer and business-driven economies, there is increased activity one month, followed by a decline the following month. Additionally, there were three separate holidays in April--Easter, Passover and Spring Break--causing some entrepreneurs to delay conclusion of their transactions. We expect to see a strong figure for May sales, expressing some of the pent-up demand for businesses.
Despite the April slowdown the underlying trend is positive. We've recorded growth of nearly 12.5% in the volume of business transfers so far this year compared to the same 2010 period. This is partly a result of improved access to borrowed funds needed to complete business sales.
Most of the largest metropolitan areas recorded declines in April compared to the same month in 2010. Los Angeles County noted a drop from 341 transactions in April 2010 to 267 concluded transactions last month. The 103 total of sales involving Orange County businesses last month represents a dip of nearly 10% from the 114 transactions registered in April 2010. The decline in San Diego County was about 47%, with 62 businesses changing hands last month compared to 116 transactions the same month last year.
A substantial growth in sales volume was reported, however, for San Francisco with 52 deals last month, up nearly 75% from 30 transactions closed in April of last year. Meanwhile, Sacramento County saw a 45% decline to 22 completed escrows in April 2011 vs. 40 deals in April 2010.
The April sales totals, by county, listed on the BizBen.com Index, at http://www.bizben.com/stats/stats-monthly-apr.php are as follows:
Alameda: 58,Amador: 5,Butte: 5,Contra Costa: 24, El Dorado: 3, Fresno: 23,Imperial: 3, Kern: 18, Kings: 1, Lassen: 1, Los Angeles: 267, Marin: 13, Merced: 3,Mono: 1,Monterey: 13, Napa: 5, Nevada: 1, Orange: 103, Placer: 7, Riverside: 43, Sacramento: 22, San Bernardino: 24, San Diego: 62, San Francisco: 52, San Joaquin: 23, San Luis Obispo: 6, San Mateo: 7, Santa Barbara: 11, Santa Clara: 60, Santa Cruz: 6, Shasta: 7, Solano: 19, Sonoma: 24, Stanislaus: 14, Sutter: 4, Tehama: 1, Tulare: 12, Ventura: 23, Yolo: 11, Yuba: 1
This information is provided by the BizBen.com Index, which for the past 15 years has collected California small businesses for sale statistical data.
About the Author: Peter Siegel, MBA is the Founder of www.BizBen.com (established 1994 - 7000+ California businesses for sale, 200 new listings daily). He consults daily with business buyers, business owners, small business advisors, business brokers and agents on selling and buying California small businesses. He is also the author of three books on the topic of how to buy and sell California small to mid-sized companies. For a FREE consultation on the best way to buy or sell a California business, phone Peter Siegel direct at 925-785-3118.
|Helpful Resources To Assist In Selling And Buying California Businesses|
|Helen Yoo, New Century Escrow - Escrow Services In Southern California
New Century Escrow, Inc. is a fully licensed & bonded independent escrow company. Over 20 years combined experience in handling bulk escrow transactions. Multi-lingual staff that speaks your language, including Korean, Chinese, Vietnamese. Call Helen Yoo direct at 626-890-1151.
|Janet Carrera: Escrow & Bulk Sale Service - SF Bay Area
Redwood Escrow Services, Inc. is a full service, licensed independent escrow company. We are EAFC Fidelity bonded, fully insured & licensed with the Department of Corporations. Committed to offering our clients the most comprehensive variety of escrow services available. Phone Janet at 510-247-0741.
|Elizabeth McGovern: Escrow Services - San Francisco Bay Area
McGovern Escrow Services, Inc., is a leading independent escrow company. We are a trusted partner with our clients, assisting them through the tangled bulk sale & liquor license transfer process. We provide attentive, quality & innovative customer service. Phone Elizabeth McGovern at 415-735-3645.
|Shalonda Chappel: Escrow & Bulk Sale Services - Southern California
Escrow services to brokers/agents, sellers, & buyers. Established 43 years. Extraordinary service. Experienced with handling difficult transactions. One stop for all your escrow needs: Bulk sales, lien searches, UCC searches, liquor license transfers, publishing & recording services. 951-808-3972.
|Brad Steinberg, Business Broker: Laundromat Specialist
PWS is the leading laundromat broker in California. Since 1968 PWS has brokered over 2,500 laundromat sales. With over 90 employees dedicated to the coin laundry industry, PWS has 18 licensed agents, a 3 person in-house finance department, 10 service technicians and a 20 person parts department.
|Diane Boudreau-Tschetter: Escrow & Bulk Sale Services - CA
California Business Escrow, Inc. is a full service independent escrow company serving all of California and has expertise in a wide range of escrows. Our team prides itself on providing an exceptional escrow experience. For more info phone Diane Boudreau-Tschetter at 888-383-3331 or 209-838-1100.
|William F. Ziprick, Attorney: Legal Services For Buyers And Sellers
Through creative problem solving, attention to detail, accessibility, & understanding that unnecessary delay is often a deal killer, I work closely with my clients and other professionals to consistently achieve a high rate of closings. Office: 909-255-8353, Cell: 509-951-7230.
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