The rate at which small and mid-sized California businesses sold last month reached a 22-month high, with 1,444 completed deals. Chief among the reasons for booming sales is improved availability of money needed for purchases, and growing buyer confidence that the economy is healthier.
March 2011 volume exceeded the figure recorded the previous March by 24%, and was ahead of February 2011 sales totals by 21%.
Most of the major metropolitan areas shared in the increase. Los Angeles County recorded 446 completed deals, up nearly 46% from the 306 transactions in March 2010. The Orange County increase to 135 closed escrows last month represents nearly 22% growth from the 111 tally of the previous March. San Francisco sales more than doubled in March 2011 to 70 transactions from only 22 sales recorded the prior March.
Another important factor in the upward trend, after a very disappointing drop in activity during 2010, is the resourcefulness of California’s entrepreneurs, learning to adapt to new realities in the market. Sellers are learning to get their businesses pre-qualified for SBA lending programs before putting their companies on the market. And they’re becoming more flexible about carrying back part of the purchase price for qualified buyers.
And purchasers who've been successful in completing deals on businesses they want to acquire are becoming much smarter about getting the funds they need. The typical loan application now includes a detailed business plan to show the lender how the borrower/buyer expects to operate the business profitably and generate revenue to repay the loan.
The March sales totals, by county, listed on the BizBen.com Index, at http://www.bizben.com/stats/stats-monthly-mar.php are as follows:
Alameda: 69, Amador: 1, Butte: 1, Contra Costa: 29, El Dorado: 3, Fresno: 26, Humboldt: 1, Imperial: 1, Kern: 28, Lake: 1, Lassen: 1, Los Angeles: 446, Madera: 4, Marin: 10, Mendocino: 3, Merced: 14, Monterey: 16, Napa: 3, Nevada: 3, Orange: 135, Placer: 11, Riverside: 72, Sacramento: 44, San Benito: 1, San Bernardino: 51, San Diego: 126, San Francisco: 70, San Joaquin: 20, San Luis Obispo: 17, San Mateo: 29, Santa Barbara: 20, Santa Clara: 77, Santa Cruz: 7, Shasta: 5, Solano: 15, Sonoma: 10, Stanislaus: 10, Sutter: 1, Tulare: 15, Tuolumne: 3, Ventura: 41, Yolo: 4
This information is provided by the BizBen.com Index, which for the past 15 years, has collected California small businesses for sale statistical data.
|Helpful Resources To Assist In Selling And Buying California Businesses|
|Brad Steinberg, Broker - Laundromat Specialists
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.
|Willard Michlin, CPA, Certified Fraud Examiner, Due Diligence Services
Willard Michlin, CPA #106752, offers buyers step by step training & assistance in doing Due Diligence Services when they are thinking of making an offer, or are in process of investigating a business purchase. He helps to determine the actual net profit even when there is cash. Call 805-428-2063.
|Elizabeth McGovern: Escrow Services - SF 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.
|Janet Carrera - Escrow & Bulk Sale Services - 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.
|Mark Chatow, Esq.: Legal Services For Buying, Selling Businesses
Mark has a broad range of small business purchase & sale experience from analyzing potential acquisition targets to successfully guiding buyers and sellers through the purchase & sale of small businesses. Mark can assist with contracts, negotiations, legal matters, etc. Reach Mark at 949-478-8393.
|Diane Boudreau-Tschetter: Escrow And Bulk Sale Services
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.
|Ranvir S. Sandhu, Esq. - Legal Services For Buyers And Sellers
I've worked at top Bay Area law firms and have extensive experience with business entity formation, mergers, dissolutions, conversions, employment matters, including experience in reviewing and negotiating transactional documents such as leases and purchase agreements.
|Joe Sandbank, Esq. - Legal Services
I have provided legal counsel to business buyers, sellers and brokers for over 17 years. With prior experience as a business broker and SBA loan officer, Joe brings both a practical and legal approach to all aspects of the business acquisition process.
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