The count of business for sale deals in California was up last month to 1,137, a rise of 21.9% from the 932 transactions completed in the state last August, according to figures released by the BizBen Index. Company statistics show 9,830 sales have been recorded so far this year, an uptick from the 9,397 transaction total at the same time in 2013.
We're seeing steady growth in activity in the business for sale marketplace in California, as money becomes more readily available from financial institutions, and as Californian's learn more innovative ways to complete their deals. The year-to-date figure is the best total since the end of August in 2009, when 9,865 businesses had been sold.
Most of California's largest counties posted gains last month, compared to August of last year. Los Angeles County recorded 327 sales last month and 274 in the same month in 2012. The total August sales in Orange County were 119 for 2013 and 90 in 2012. San Diego County's increase was from 79 to 116.
A 66.7% rise in deals last month were recorded in San Francisco, with 40 August sales, compared to 24 transactions completed the same month last year. But declines were seen in Sacramento County, with a count of 30 deals last month vs. 44 during August 2012; and in Santa Clara County, which showed a slight decline to 55 sales from 58 in August of last year.
This gradual recovery from the drop in small business sale activity following the banking crisis is similar to the slow growth we're witnessing in employment figures, consumer confidence levels, stock market values and other indices that chart the strength of our economy. We expect to see continued improvement in the rate of the state's business transfers in the months ahead. It's encouraging to notice that many people in the market are becoming more professional in the way they prepare for their purchase and sales campaigns, and more resourceful in the way they raise money, negotiate deals and overcome obstacles that have negatively impacted the market in the past few years.
Many of their strategies are discussed in my newly released iBooks: Buying a California Business in the New Economy and Selling a California Business in the New Economy.
BizBen Sales Statistics:
August sales totals by California County, found at http://www.bizben.com/stats/stats-monthly-aug.php are:
Alameda: 45, Amador: 1, Butte: 4, Calaveras: 3, Contra Costa: 12, El Dorado: 6, Fresno: 27, Imperial: 1, Inyo: 1, Kern: 32, Kings: 1, Lake: 2, Los Angeles: 327, Mendocino: 4, Mono: 1, Monterey: 17, Napa: 10, Nevada: 1, Orange: 119, Philadelphia: 1, Placer: 9, Riverside: 63, Sacramento: 30, San Bernardino: 51, San Diego: 116, San Francisco: 40, San Joaquin: 15, San Luis Obispo: 6, San Mateo: 13, Santa Barbara: 8, Santa Clara: 55, Santa Cruz: 4, Shasta: 4, Solano: 21, Sonoma: 27, Stanislaus: 12, Sutter: 6, Tulare: 8, Tuolumne: 4, Ventura: 17, Yolo: 6, Yuba: 2
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 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|
|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.
|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.
|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.
|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.
|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.
|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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