California posted 1,052 completed deals involving the state's small and mid-sized business for sale offerings last month, an uptick of 2.9 percent compared to the 1,022 transactions closed the same month last year, according to figures released by the BizBen Index. The November total was the second lowest of any month this year. It's a demonstration of the very slow recovery we're seeing as we watch the rate of deal volume following the sales decline during the recession.
Sales performance last month in the state's largest counties was mixed, with Los Angeles, Riverside, Sacramento and San Francisco counties posting gains compared to November 2012, while Orange, San Diego, San Bernardino, Alameda and Contra Costa Counties saw fewer transactions than during the same month last year.
This market continues to suffer the effects of the Great Recession, with a continuing mood of uncertainty that keeps some potential buyers and sellers from participating in the market, and a tighter lending environment making it harder than it was a few years ago for buyers to access the capital, from financial institutions, that they need to complete the deals they want to make.
One issue that still plagues the business for sale market in California, as in many other parts of the U.S., is the inability of buyers to find appealing deals, even though there is growth in the number of businesses for sale as more baby boomer owners decide to retire. A big part of that problem is that many buyers are behaving the way buyers did a generation ago, when they waited for a phone call from a business sales intermediary (business broker or agent), to inform them about new business listings to investigate. It's clear that in this market, buyers need to be considerably more pro-active in order to succeed.
People able to complete business purchases are those who've become smarter about finding businesses to buy that are not being actively promoted for sale. And their more innovative approaches to deal structure are useful in encouraging owners to sell now, rather than wait for the economy to improve.
Sales totals posted by county last month are available at http://www.bizben.com/stats/stats-monthly-nov.php are as follows:
Alameda: 33, Butte: 1, Contra Costa: 39, El Dorado: 4, Fresno: 19, Humboldt: 2, Imperial: 2, Inyo: 1, Kern: 19, Lassen: 1, Los Angeles: 351, Madera: 1, Marin: 9, Mariposa: 1, Mendocino: 1, Merced: 7, Monterey: 6, Nevada: 1, Orange: 95, Placer: 3, Riverside: 33, Sacramento: 34, San Bernardino: 45, San Diego: 82, San Francisco: 39, San Joaquin: 14, San Luis Obispo: 9, San Mateo: 12, Santa Barbara: 11, Santa Clara:Santa Cruz: 7, Shasta: 3, Solano: 8, Sonoma: 23, Stanislaus: 13, Sutter: 3, Tulare: 14, Tuolumne: 5, Ventura: 42, Yolo: 4, Yuba: 1
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 and the BizBen Network Online Community (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|
|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.
|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.
|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.
|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.
|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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