California business for sale transactions just missed setting the all-time high set back in 2013, it was reported by the BizBen Index.
The number of transactions completed in the month of March this year reached 1,537 coming up just short of the 1,586 recorded in March of 2013.
The 1,537 completed transactions represents a 9.3 percent increase in the number of California businesses sold compared to last month and a 16 percent increase over March 2015.
"One factor in that growth is the strengthening of small business financials and owner confidence in the market place’ said Peter Siegel, MBA, Founder and President of BizBen.com, parent of the BizBen Index.
Siegel explained, "Because of the improved economy, job growth and an overall strengthening of small business financials we are seeing more small business owners decide that now is the time to sell.”
Other reasons for the improved sales rate, according to Siegel, are easier access to business purchase loans from both SBA-backed and non-SBA lenders, and increased willingness of buyers and sellers to commit to a transaction as they see the economy improving.
Siegel also noted, “The business for sale market has always been a key indicator of California’s overall economic health. When fewer small business for sale transactions take place there is a correlating increase in the number of business that go out of business as owners who retire or become too ill are unable to continue running their enterprises. The more transactions that occur and that place stable businesses in the hands of new and capable owners the better the overall economic health of California.”
"If the economy continues to improve and current lending practices stay stable we just may see a record year for small business for sale transactions."
Larger Counties With Improved Sales
Among large Southern California Counties reporting growth in the sale of small and mid-market businesses last month are Los Angeles County with 386 transactions, a 20% increase compared to the 320 sales completed in March of last year; Orange County posting 150 completed business transfers last month, a gain of nearly 16% over the 129 transactions posted the previous March; and San Diego County with a rate of sales increase of 58% to 151 sales last month vs. 95 the previous year.
The BizBen Index reported growth last month in some of the largest Northern California counties including San Francisco where 63 sales were completed compared to 52 deals the previous March, and Santa Clara County, posting 73 deals last month vs. 52 during March 2015.
The total business sales by county recorded last month, available at http://www.bizben.com/stats/stats-monthly-mar.php are:
Alameda: 64, Amador: 1 Butte: 12, Contra Costa: 28, El Dorado: 15, Fresno: 32, Humboldt: 2, Imperial: 5, Kern: 55, Kings: 1, Lamar: 1, Los Angeles: 386, Marin: 12, Merced: 1, Monterey: 27, Napa: 8, Nevada: 11, Orange: 150, Placer: 13,Riverside: 61, Sacramento: 62, San Bernardino: 63, San Diego: 151, San Francisco: 63, San Joaquin: 17, San Luis Obispo: 1, San Mateo: 30, Santa Barbara: 24, Santa Clara: 73, Santa Cruz: 16, Shasta: 15, Solano: 17, Sonoma: 34, Stanislaus: 11, Sutter: 7, Tehama: 2, Tulare: 27, Tuolumne: 5, Ventura: 23, Yolo: 4, Yuba: 3
Sales totals posted by California county over the last nine years are available at: http://www.bizben.com/stats/stats-total.php
The BizBen Index has been collecting and reporting information about small California business sales for over 17 years.