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|
|William Park, Business Broker - Southern California
Highest Volume Broker in California, Simply Check our HUNDREDS of Listings! Over 25 Associates, Speaking Dozen Languages, Helping Buyers and Sellers of Small Business since 1982, Centrally Located between Los Angeles and Orange Counties, while Riverside & San Bernardino Counties are Very Accessible.
|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.
|Michael Davidson, Business Broker - Southern California
Los Angeles Business Broker providing M&A quality services for Small Business Owners. We leverage our technology and expertise to Simplify & Expedite the Business Sales Process. Matching the right buyer with the right business is how we define success.
|Mani Singh, Business Broker, Inland Empire
I have successfully represented clients sell & acquire multitude of businesses ranging from Gas Stations, Liquor Stores, Markets, Super Markets, Smoke Shops, Postal Stores, Restaurants, General Retail, Auto and Construction related. Phone me for assistance with selling or buying at 951-296-7646 Cell
|Timothy Cunha, JD - Business Broker, SF Bay Area
I am an experienced entrepreneur, attorney, & business professor. I & my EvergreenGold® team offer business owners sound advice & expertise to build business value & achieve profitable sales. Call me today for a FREE business evaluation & SWOT analysis for your business anywhere in the USA.
|AJ Rana - Business Broker, San Francisco Bay Area
Professionals who understand the importance of world class business brokerage service and the value it can create. Specializing in assisting sellers and buyers with retail stores, restaurants, hospitality & lodging, manufacturing operations, distribution companies, e-commerce and service businesses.
|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.
|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.
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