Share This Info:  

Survey Of California Business Brokers Discuss Business Sales Trends


A majority of California Business Brokers thinks it will be awhile before the slowed rate at which small and mid-sized businesses change hands will return to pre-2008 levels. That's when purchase funds were much easier to borrow and consumer optimism was high. Nearly half of the brokers and agents polled recently in a BizBen.com Poll don't anticipate a full recovery.

That's the conclusion reached by business sales professionals asked in a statewide survey to predict when we can look forward to a level of business sales activity similar to the closed escrow figures posted thru 2007. A large percentage of respondents, 45%, doubt the rate of business transfers will match up to the annual figures--often about 25,000 deals--recorded in many of the years that preceded the mortgage meltdown and economic ailments that followed. The next largest group was 35% of respondents who predicted the business sales activity will recover, but not until the 2012-2013 time frame.

The survey results also show that about 18% of business brokers and agents who were questioned about a recovery in the businesses for sale market are more optimistic, saying we’ll begin to achieve monthly sales levels matching the pre-2008 numbers within a year. The remainder, about 5%, believe that recovery has already taken place.

The count of businesses sold last year totaled 13,329, a decline from the 14,277 deals recorded in 2009, according to the BizBen Index, which has been tracking and reporting business sales statistics in California for a number of years. The Index reported 21,689 completed transactions in 2008, the year associated with the mortgage crisis. Some 26,238 businesses had been sold the previous year.

Among the observations of business sales intermediaries we spoke with was an often- repeated belief that many potential buyers as well as sellers took a ”wait and see” attitude rather than moving forward with their plans. Some of the buyers actively engaged in looking for purchase candidates abandoned the search when it became apparent that business revenues were declining. And a number of owners of small and mid-sized businesses who were readying their companies for sale decided to put their plans on hold.  Their fears were that the prices they could get for their businesses were dropping along with revenues and profits.

"Any time you see a fall off in sales of 50% in just three years, you know it’s time to take a second look at the business," was the comment of one Southern California broker who was asked about this. He referred to the difference in the number of business sales recorded in California last year vs. the 2007 total.

Another of the business brokers noted that "Maybe it’s just a matter of a correction in the market. I’m sure we’re going to see sales volume come back up. The underlying forces are there. The demand is building for buyers and sellers. But it will take a while."

About the Author:  Peter Siegel, MBA is the Founder of www.BizBen.com (established 1994 - 7000+ California businesses for sale, 200 new listings daily) and the Director of the BizBen Network (16,000 business buyers, 4,000 small business owners, 1,800 California business brokers & agents). BizBen.com offers business buyers free online webinars/educational events, and phone consultations on the best way to find and buy a California small to mid-sized business. Peter Siegel can be reached direct at 925-785-3118.







  Helpful Resources To Assist In Selling And Buying California Businesses
Willard Michlin, CPA, Certified Fraud Examiner, Due Diligence

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.

Brad Steinberg, Business Broker: Laundromat Specialist

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.

Diane Boudreau-Tschetter: Escrow & Bulk Sale Services - CA

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.

Shalonda Chappel-Pilgram: Escrow & Bulk Sale Services - Southern California

Escrow services to brokers/agents, sellers, & buyers. Established 43 years. Extraordinary service. Experienced with handling difficult transactions. One stop for all your escrow needs: Bulk sales, lien searches, UCC searches, liquor license transfers, publishing & recording services. 951-808-3972.

Janet Carrera: Escrow & Bulk Sale Service - 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.

Helen Yoo, New Century Escrow - Escrow Services In 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.

Elizabeth McGovern: Escrow Services - San Francisco 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.


  Related Articles, Events, Blog Posts, Discussions, Videos, Interviews
Absentee Run Businesses - A Myth Or Reality When Buying A Small CA Business?

Some buyers search for an absentee business to own, wanting to collect profits generated by a successful enterprise without having to stand at the sales counter or cash register, without having to cook, operate equipment or talk to customers. Here's some insight about finding such a business.

Selling Your Business To One Of Your Employees - A Good Idea? Pros And Con

After investing years of time and talent into a company, many small business owners want to feel like they are leaving their business in good hands and for that reason, some sellers opt to sell their business to an employee. Peter Siegel, MBA talks about the pros and cons to taking this route.

Tips When Using Escrow Bulk Sale Services When Buying Or Selling A Business

The final part of the business for sale transaction is the escrow and bulk sale process by Peter Siegel, MBA (Business Purchase Financing Expert, ProBuy & ProSell Program Advisor) answers questions and describes the escrow and bulk sale process. Peter can be reached direct at 925-785-3118.

Find Out Why 80% Of California Business Buyers Never Find And Buy A Business

First the dreaded statistic: 80% of all California business buyers looking to buy a small to mid-sized business in California never end up doing so! Peter Siegel, MBA BizBen Founder And Director at 925-785-3118 covers successful tactics all business buyers of small businesses should utilize.

How Do I Navigate Through The Negotiation Process When Buying A Business?

Negotiating the terms of a business deal is a delicate process, where one wrong move can cost you the business that you wanted to purchase. Peter Siegel, MBA (BizBen ProBuy Program) discusses the ins and outs of negotiations, and how to work well with the seller to get a deal done.

Absentee Run Small Businesses - Is That Really A Possibility For Buyers?

Is buying a absentee run small business really a possibility? Peter Siegel (BizBen ProBuy Director) gets asked this question a lot in his consulting sessions with business buyers. Read more about what other Advisors and Intermediaries feel about this topic on this popular BizBen Discussion!

Should I Buy A Business That is Losing Money? Feedback From Top Advisors

Are businesses worth taking a look at when they are losing money? Multiple Advisors & Business Brokers weigh in on this topic and say yes! (but be careful) on a BizBen Discussion. Some great feedback on this topic will make potential business buyers (and money losing sellers) want to read this info!

Top 100 List: This Week's Top Motivated Business Buyers & Their Requests!

If you're trying to sell a business - check out this week's top 100 business buyers - one of these buyers may be looking to buy your type and location of business! This list is updated weekly - make sure you check it frequently! Are you searching to buy - get on this list and reach seller direct!


Escrow Services Diane Boudreau-Tschetter
Tim Cunha Business Brokerage
Steve Erlinger Laundromat Broker
Cheryl Maloney Restaurant Broker San Francisco
Facebook
Twitter
Linkedin
Vlogs and Podcasts
BizBen Blogs And Articles
New Postings Reports On BizBen Sign Up
BizBen ProSell Program
Instant Email Alerts On BizBen
Business For Sale California Stats

BizBen - Where California Deals Get Done! 888-212-4747
7172 Regional Street #364 · Dublin, CA. 94568
BizBen · Copyright © 1994 - 2019, All Rights Reserved



Clost Login


Please confirm your registration by clicking the link we've sent to .

If you can't see it, please check your junk mail folder.

If you have any problems registering, or need assistance with your new BizBen User Account please phone BizBen Customer Support at 888-212-4747.



First Name:*
Last Name:*
Email Address:*
Confirm Email:*
Create Password:*
Confirm Password:*
Phone:
(   
 


You Are A:
Individual
 
Intermediary
 

Email Address:
Password:
 

500 New & Refreshed Detailed Postings Daily
Over 2500 Resources Available On BizBen
Since 1994. Where California Deals Get Done!
Is There Such A Thing As Paying Too Little When Buying A Small Business?...
Read More News
Valuing A Business - Do You Add The Inventory Amount To The Price Or Not...
Read More News