The total of 1,282 small and mid-sized California businesses sold last month represents an increase of 26% over the number of completed transactions posted in November last year, it was reported by the BizBen Index. The company also said the rate of business transfers so far in 2015 marks the highest year-to-date total in the past seven years.
The strong performance can be attributed mostly to recovery in the lending market. Access to funds needed to complete business purchases has slowly improved since the lending crisis of 2007 and 2008. The loan rate now seems to be normalizing.
As the economy improves, more buyers gain the confidence needed to commit to a business purchase. At the same time, business owners in the Baby Boomer generation are more active in selling out so they can retire or go on to other enterprises.
Most of the state's largest markets posted strong gains in sales last month compared to the same month a year ago. Los Angeles County business transfers were up over 21% to 338, compared to the 278 transactions completed last November. The San Diego County deal count reached 100, a 16.3% increase compared to 86 sales in November 2014. Santa Clara County recorded 58 transactions, up more than 18% from 49 deals on a November-to-November comparison.
Sales volume Increases also were recorded in Orange County posting 48% growth to 138 transactions, San Bernardino County with 81 business transfers, an increase of 15.7%, and in San Francisco recording 39 sales vs. 30 the previous November.
Smaller increases were noted in Alameda (43) and Contra Costa Counties (19), each with two more sales last month than the same month last year.
Several business sales intermediaries, financing professionals and others who serve this market have told me we can expect stronger sales activity in 2016. More people are considering business ownership as a better career choice than continuing to work as employees. And this increased demand is met with growing supply as owners throughout the state are deciding to "cash out" of their businesses.
The total business sales by county recorded last month, available at: http://www.bizben.com/stats/stats-total.php, is as follows:
Alameda: 43, Amador: 3, Butte: 18, Contra Costa: 19, El Dorado: 11, Fresno: 19, Kern: 52, Lassen: 1, Los Angeles: 338, Marin: 2, Mendocino: 3, Merced: 6, Monterey: 12, Napa: 1, Nevada: 5, Orange: 138, Placer: 30, Riverside: 45, Sacramento: 26, San Bernardino: 81, San Diego: 100, San Francisco: 39, San Joaquin: 18, San Luis Obispo: 11, San Mateo: 43, Santa Barbara: 17, Santa Clara: 58, Santa Cruz: 2, Shasta: 13, Solano: 18, Sonoma: 26, Stanislaus: 10, Sutter: 6, Tehama: 7, Tulare: 12, Tuolumne: 1, Ventura: 26, Yolo: 9, Yuba: 1
The BizBen Index has been collecting and reporting information about small California business sales for 17 years to help business owners/sellers, buyers and the professionals participating in this market make informed choices and achieve success.
|Helpful Resources To Assist In Selling And Buying California Businesses|
|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.
|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.
|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.
|William F. Ziprick, Attorney: Legal Services For Buyers And Sellers
Through creative problem solving, attention to detail, accessibility, & understanding that unnecessary delay is often a deal killer, I work closely with my clients and other professionals to consistently achieve a high rate of closings. Office: 909-255-8353, Cell: 509-951-7230.
|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.
|Shalonda Chappel: 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.
|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.
|Related Articles, Events, Blog Posts, Discussions, Videos, Interviews|
|Buy A Business Or Start From Scratch? 5 Key Differences For Business Buyers
Some buyers believe it's better to start a business from scratch rather than buy an existing enterprise. While this may be good advice in some cases, usually it's not the best strategy. Here are five tips to help a buyer make the right decision from from Peter Siegel, MBA (BizBen Director).
|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!
|Need Financing To Buy A Small Business? Business Purchase Financing Details
What are actual adjusted net earnings (cash flow) of a small business being purchased with business acquisition financing? That's an important amount that lenders need to know. Peter Siegel, MBA (BizBen.com's Lead Advisor - ProBuy/ProSell Programs) reviews this concept with BizBen Blog readers.
|Why Isn't My Business Selling? 6 Great Questions To Ask Yourself For Answers
It can take months, sometimes longer to sell a small business. Here are 6 questions from Peter Siegel, MBA (Business Purchase Financing Expert, ProSell Program Advisor with BizBen) at 925-785-3118 to ask yourself to help you determine why your small to mid-sized California business isn't selling.
|How Many Months Should I List My Business With A Business Broker?
It's important to remember that selling a business takes time. Unlike selling a house, which can be sold relatively fast, a business can take up to six months to a year to sell. Joe Ranieri (Orange County Business Broker) at 714-292-5448 explores this topic from a Business Brokers perspective.
|Computing All Add Backs: Defining Adjusted Net Income When Buying A Business
The use of add backs & adjusted net income is common among sellers of businesses when showing their financial information/performance. But buyers are cautioned to review financials and tax returns/documents closely. Peter Siegel, MBA with BizBen (ProBuy & ProSell Advisor, Lead Facilitator) explains.
|Find Out Why 80% Of California Business Buyers Never Find And Buy A Business
First the dreaded statistic: 80% of all CA business buyers looking to buy a business in California never end up doing so! Peter Siegel, MBA BizBen.com Founder & ProBuy Director) covers successful tactics & strategies all business buyers of California small to mid-sized businesses should utilize now.
|Why Deals Fall Out: Unrealistic High Asking Prices Are Usually The Reason
The unfortunate truth is that approximately 50% of all small business sales transactions fall through. While failed transactions can happen for a variety of reasons, Peter Siegel, MBA (BizBen Founder & Lead Advisor) discusses the most common reason deals fall through; unrealistic asking prices.