The sum of 1,176 small California business for sale deals completed in California last month represents a decline of about 14% from the 1,371 sales recorded in the same month last year, according to the BizBen.com Index.
It also said, however, that a total of 7,366 small and mid-sized California business were successfully matched up with buyers through the first half of the year, up a slight 1.47%, from 7,259 completed transactions over the first six months of 2012.
The slowdown last month wasn't unexpected. Some of the people who might have purchased businesses in the past few months are watching the jobs picture improve and are joining or planning to join the workforce as employees for someone else.
I think we can consider last month's sales decline a minor correction. The underlying pressures are there, on both the buyer/demand and the seller/supply sides, for us to see continued growth in businesses sales throughout the state, long term.
Some of California's largest business sales markets recorded substantial declines in the number of deals completed last month vs. June 2012. Only 247 businesses in Los Angeles County changed hands last month, a drop of 35.7% compared to the 384 deals concluded in the same period last year. Orange County business sales slipped 32.6% to 97 deals last month, from the 144 completed sales during June 2012. San Diego County also recorded a decline of 32.6% from 139 closed escrows in June 2012 to 97 for the month recently completed.
Gainers include Alameda County, up almost 25% from 57 to 71 transactions last month, and San Bernardino County with business sales last month showing a 50% increase, from 44 to 66.
Key factors needed to spur California small business sales""confidence about the future of the economy and ready access to borrowed funds--are slowly improving. Part of rising consumer confidence is a greater willingness of both buyers and sellers to overcome the uncertainty that has plagued the market, and to move forward with their plans. And California business buyers are finding it easier to get the loans they need to complete their deals. Part of the reason is that they are getting smarter about preparing "˜approval-ready' loan applications.
June sales totals by California County, found at, http://www.bizben.com/stats/stats-monthly-jun.php are:
Alameda: 71, Butte: 7, Contra Costa: 31, Fresno: 27, Imperial: 6, Kern: 27, Los Angeles: 247, Marin: 16, Mendocino: 3, Merced: 5, Monterey: 24, Napa: 7, Nevada: 4, Orange: 97, Placer: 8, Riverside: 45, Sacramento: 44, San Bernardino: 66, San Diego: 97, San Francisco: 52, San Joaquin: 28, San Luis Obispo: 6, San Mateo: 27, Santa Barbara: 22, Santa Clara: 51, Santa Cruz: 7, Shasta: 8, Solano: 17, Sonoma: 40, Stanislaus: 13, Sutter: 1, Tehama: 4, Tulare: 20, Ventura: 32, Yolo: 8
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.
This encouraging news does not change the fact that 80 percent of buyers in the market right now are unlikely to achieve the goal of purchasing a business. Meanwhile, 70 percent to 75 percent of sellers will not be able to find a willing and able buyer ready to close a deal. That means a lot of wasted time and energy on both the buy and sell sides of the market.
We endeavor to aid serious and determined individuals in their efforts to buy or to sell, with the ProBuy and ProSell programs provided on this site. A new eBook, "Buying a California Business in the New Economy" has recently been published, offering information, insights and strategies for those who intend to be among the 20 percent of California business buyers who are successful. The eBook "Selling a California Business in the New Economy," will be available shortly.
|Helpful Resources To Assist In Selling And Buying California Businesses|
|Bob Baumgarten, Business Broker: Orange, LA Counties
National Business Brokerage is a full service brokerage company that has been serving buyers and sellers of Southern California businesses since 1994. We are dedicated to providing the highest standards of professional service for our clients. Phone Bob direct at 949-588-8727.
|Lee Petsas, Business Broker - Orange, San Diego Counties, Inland Empire
UBI Business Brokers has been successfully selling businesses in Southern California since 1965. Our Agents have over 100 years of experience in selling small to medium size businesses throughout Southern California. We service Orange County, Inland Empire, San Diego. Phone Lee at 714-363-0440.
|Prabhjot Randhawa, Broker: SF Bay Area, Northern Central Valley
I'm a Business Advisor at Liberty Business Advisors of San Fransisco. I have over 20 years of experience in all phases of entrepreneurship. During the past 15 years my concentration has been in business of mergers and consulting. I have owned and operated over 10 businesses.
|George Lanza, Business Broker, At Plethora Business Sales
Plethora Businesses, a division of A Premier In Services, Inc., is a Business Intermediary Consulting Firm headquartered in Orange, California. Plethora specializes in the listing and sale of small and medium sized private businesses.
|Matt Sadati, Business Broker, SF Bay Area, Northern CA
I have Engineering and Law, JD degree, with over 30 years of experience in all phases of entrepreneurship. During the past 15 years my concentration has been in business of mergers and consulting. I have owned and operated over 33 businesses each having one to 30 branches.
|Ryan Clark, Business Broker, Southern California
The Veld Group provides a refreshing approach to Business Brokerage, Mergers & Acquisitions and Business Consulting and Valuations. From Your Street to Wall Street, we cater to Main Street Businesses as well as more complex Strategic Firms and Start-Ups. Phone Ryan at 310-652-8353.
|Steve Zimmerman: Restaurant Broker Specialist
Steve founded Restaurant Realty in 1996. He has personally sold/leased over 900 restaurants, bars & clubs, & completed over 3000 valuations. The author of "Restaurant Dealmaker - An Insider's Trade Secrets For Buying a Restaurant, Bar or Club" available on Amazon. Reach Steve direct at 415-945-9701.
|Michael Floorman, Business Broker, BTI, San Francisco Bay Area
Business Team, San Jose (Campbell) located in the Pruneyard Towers at Bascom and Hamilton. Established in 1981 Business Team with over 6600 sales to date has 1000 business listings to choose from, paid Google advertising. We offer highly trained and experienced professionals.
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