The transfer rate of small and mid-market California business for sale offerings was up by ten percent last month, at 1,327 deals, compared to the 1,206 transactions completed the same month last year, according to the BizBen Index figures. Much of the reason for the increase in the deal count results from some smart strategies and good preparation by business buyers and sellers.
Many of the people we've talked with are learning to overcome some of the problems that have caused decline in activity in California's business for sale marketplace over the past few years. Impediments persist, but buyers are figuring out where to get the funding they need in a market where business loans are more difficult to get than they were before the banking crisis and the Great Recession that followed. And sellers are going to more trouble to prepare their businesses for sale at a time when many buyers watch the slow recovery and often are hesitant to move forward on the purchase of a business they would ordinarily pursue more aggressively if we were in a booming economy.
Most of the state's largest counties posted increases in the rate of business sales in the just-completed month compared to July of 2012. That includes Los Angeles County, with a 5.8 uptick in the July sales total to 384, from 363 deals completed in July a year ago; Orange County, where July to July sales increased nearly 11 percent to 132; San Diego County with 101 business sales last month, up nearly 19% over July 2012 figures; and San Bernardino County, with 49 deals last month, up by five sales from last July.
Some large Northern California counties showing improved sales last month vs. July 2012 are San Francisco, with 75 transactions last month, a multiple of nearly 3.7 times the 16 business sales total recorded last July; Alameda County, posting 65 sales, more than a 200 percent increase from 20 transactions, and Santa Clara County, with a 14.5% increase to 71 sales.
The recovery of California's business for sale marketplace is taking place more slowly than we would like. Throughout the country""not just in California-- Main Street business sales activity is not expanding as rapidly as the equity markets on Wall Street. The major reason is that individual business buyers have more at stake, and act more cautiously than the professional investors who trade in corporate shares. We can look forward to continued, measured growth in this market as it responds to increased demand from baby boomer owners ready to sell so they can retire And there is increasing demand on the "buy" side as a growing number of Californians are choosing to purchase their own business rather than relying on the jobs market for career advancement.
And our recovery is aided by the resourcefulness of California entrepreneurs who are finding innovative approaches to overcome some of the problems that have been impeding growth in the rate of business transfers. These strategies are described in my new ebooks: "Buying a California Business in the New Economy" and "Selling a California Business in the New Economy."
July 2013 sales by County, found at: http://www.bizben.com/stats/stats-monthly-jul.php are as follows:
Alameda: 65, Amador: 2, Butte: 5, Calaveras: 4, Contra Costa: 28, El Dorado: 2, Fresno: 24, Imperial: 2, Inyo: 5, Kern: 33, Kings: 1, Los Angeles: 384, Madera:1, Marin: 6, Mendocino: 2, Merced: 5, Monterey: 4, Napa: 10, Orange: 132, Placer: 18, Riverside: 51, Sacramento: 47, San Bernardino: 49, San Diego: 101, San Francisco: 75, San Joaquin: 9, San Luis Obispo: 18, San Mateo: 19, Santa Barbara: 20, Santa Clara: 71, Santa Cruz: 10, Shasta: 9, Solano: 14, Sonoma: 16, Stanislaus: 15, Sutter: 4, Tehama: 6, Tulare: 16, Tuolumne: 1, Ventura: 21, Yolo: 12, Yuba: 1
Sales statistics by city and county throughout the state for the past four years are accessed at http://www.bizben.com/stats/stats-total.php.
The BizBen.com Index has been collecting and reporting information about small California business sales for 16 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 & Principal 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 to discuss strategies regarding buying, selling, (or financing a puchase of) California businesses.
|Helpful Resources To Assist In Selling And Buying California Businesses|
|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.
|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.
|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.
|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.
|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.
|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.
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