A total of 8,999 small California businesses for sale were sold in 2009, as of July 19, with a slowdown, in the most recently completed week.
We’re watching some interesting movements in business sales figures this year with competing pressures at work.
On one hand, the economy has caused a slowdown in the number of closed transactions this year. Not surprisingly, many people are hesitant to make important business decisions in an uncertain environment. Also impedes activity is the shortage of funds available to help finance business transactions.
But California’s small business buyers and sellers are very innovative. People keep finding ways to do business even with the obstacles in the current marketplace.
While transaction volume accelerated in the spring, it has declined this summer. That was predictable, since many people take vacations this time of year. And we’ve noticed the level of closed escrows in the just-completed week--totalling160--is half the weekly average--321--for the year.
But there is reason for optimism. For one thing, we anticipate some pent-up demand will put pressure on the market and we’ll see more activity this fall. Another factor is improved access to funding experienced by buyers and sellers of small and mid-market companies.
The SBA (Small Business Administration) is pushing banks and other business lenders to open the taps so there is financing available when a qualified buyer needs cash to complete a deal. One of the SBA moves in that direction was boosting its guarantees--up to 90% in some cases--so that lenders feel more secure and so there’s greater willingness to make loans. Another move was eliminating the rather costly fees charged borrowers. Without that cost, entrepreneurs are more encouraged to move forward with their purchase plans and search for the money they need so they can buy a business.
Here are the sales figures, by county, for the period: July 13 thru 19.
Alameda: 9, Butte: 2, Contra Costa: 2, Fresno: 6, Imperial: 1, Kern: 2, Los Angeles: 43, Marin: 2, Mendocino: 1, Merced: 1, Monterey: 6, Napa: 1, Orange: 17, Placer: 1, Riverside: 5, Sacramento: 4, San Bernardino: 6, San Diego: 9, San Francisco: 6, San Joaquin: 3, San Luis Obispo: 1, San Mateo: 2, Santa Barbara: 1, Santa Clara: 8, Santa Cruz: 1, Shasta: 1, Solano: 3, Sonoma: 6, Stanislaus: 3, Tulare: 2, Ventura: 4, Yolo: 1
|Helpful Resources To Assist In Selling And Buying California Businesses|
|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.
|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.
|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.
|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.
|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.
|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.
|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.
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