A total of 11,579 small and midsized California business for sale deals were concluded in the first three quarters of 2014, the best performance in the market since 2008, when the mortgage meltdown first impacted the state's business for sale market. The sales information, released by BizBen Index, showed mixed results by county, with improvement in the rate of deals in some of the state's largest counties, and a decline in others.The sum of businesses sold through September last year was 11,166, resulting in year-to-year growth in sales of about 3.7% so far in 2014.
Sales growth is partly the result of easier access to the money buyers need to borrow in order to complete their deals. In addition to more co-operation from financial institutions asked to provide purchase money loans, sellers are increasingly willing to help finance the acquisition of their businesses by lowering their down payment requirements. We've seen a rise in the incidence and the amount of seller carry-backs, in which sellers take some of the purchase price in the form of a promissory note to be paid off by the buyer in periodic installments.
Los Angeles County saw an increase in deals to 381 last month, about 3.7% ahead of the 339 transactions recorded in September 2013. By contrast, declines were recorded in Orange and San Diego Counties where 131 and 107 deals closed escrow last month, respectively. Orange County's deal count was 142 in September last year, while San Diego County posted 125 deals that month.
Northern California sales were led by Santa Clara County with 60 deals last month, vs. 49 transactions completed in September 2013. But San Francisco posted 31 sales of small businesses last month, down by more than 35% compared to the 48 deals completed during the same month last year. And Sacramento County saw an increase of nearly 42%, with 44 deals last month compared to 31 transactions closed the same month of last year.
The count of September 2014 sales of small businesses, by county, found at http://www.bizben.com/stats/stats-total.php is:
Alameda: 48, Amador: 4, Benton: 2, Butte: 14, Clark: 1, Contra Costa: 32, El Dorado: 5, Fresno: 37, Glenn: 1, Imperial: 2, Jefferson: 1, Kern: 21, Lassen: 1, Los Angeles: 381, Marin: 1, Merced: 6, Mono: 1, Monterey: 12, Napa: 7, Nevada: 4, Orange: 131, Placer: 10, Riverside: 55, Sacramento: 44, San Bernardino: 67, San Diego: 107, San Francisco: 31, San Joaquin: 14, San Luis Obispo: 18, San Mateo: 31, Santa Barbara: 12, Santa Clara: 60, Santa Cruz: 5, Shasta: 5, Solano: 16, Sonoma: 13, Stanislaus: 17, Sutter: 3, Tehama: 1, Tulare: 16, Tuolumne: 1, Ventura: 38, Yolo: 12.
Sales statistics by city and county throughout the state for the past ten years are accessed at http://www.bizben.com/stats/stats-total/php.
The BizBen Index has been collecting and reporting information about small California business sales for 17 years, to help business owners/sellers, buyers and the professionals participating in this market make informed choices and achieve success.
About This Contributor: Peter Siegel, MBA is the Founder & Senior Advisor (ProBuy & ProSell Programs) at BizBen.com (established 1994, 8000+ California businesses for sale, 500 new & refreshed postings/posts daily) working with business buyers, small business owners/sellers, business brokers, agents, investors, and advisors). Reach him direct at 866-270-6278 or 888-212-4747 to discuss strategies regarding buying, selling, (or financing a puchase of) California businesses.
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|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.
|Helen Yoo: Escrow & Bulk Sale Services - 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.
|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.
|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.
|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.
|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.
|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.
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