California Sees Best Business For Sale Deal Count In Five Years: BizBen Index
A total of 4,006 small and mid-sized California businesses for sale transactions were successfully completed during the first quarter of 2013, the highest deal count for the first three months for any of the past five years, according to figures release by the BizBen Index.
The company said the tally, completed at the end of last month, exceeds the 3,652 transaction total posted for the first quarter last year by nearly 10 percent.
Large Counties Show Year-to-Year Gains
Most of the state's largest counties reported gains in small business sales the first 2013 quarter compared to the same period last year. Increases were seen in Los Angeles County with 1,048 finalized transactions in the just-completed quarter, up by 13.4% over the sales tally recorded in the same quarter of last year. Orange County's first quarter total is 434, a pickup in activity of about 23% compared to 351 deals finalized in the January-thru-March period of 2012. A total of 387 small and mid-sized San Diego County businesses have been sold so far this year, an increase of 29% compared to the 300 sales conducted during the same 2012 period.
Winners in large Northern California counties include Santa Clara County with 168 successful transactions during the past three months vs. 146 deals for the same 2012 period. Some 161 San Francisco businesses changed hands in the first quarter this year, an increase of about 3.22 percent, compared to 156 closed deals in the same month last year.
New Economy Challenges
We're eager to see improvement in the number of small California business transfers, but it's too soon to call the increase in sales a full recovery in the state's business for sale marketplace. There are more buyers and sellers in the market today than we've seen in a generation That's because so many baby boomer business owners are trying to sell out and retire; and a growing number of Californians want to get into their own business because they're frustrated about the limited opportunities to enjoy job security or to pursue a promising career, as long as they are working for someone else. But that hasn't resulted in the boom in business transfers that some people predicted. Instead, the sales totals still lag far behind the volume of completed deals recorded during the years before the recession.
For example, while the total of successfully closed transactions in California over the past three months has grown compared to figures from the past few years, we're still looking at a drop of about 29% from the 5,643 business sales transactions finalized in the state during the first quarter of 2008.
The way to read the sales figures and to understand the underlying forces at work is to recognize that we are not about to see our familiar marketplace "return to normal." Some of the ways we've traditionally gone about offering a company for sale, or identifying a good business to purchase and then getting the funds to complete a deal, are not working as effectively now as they did before the recession.
California entrepreneurs who recognize the changes are starting to understand we are working in a New Economy, one that requires both buyers and sellers to employ fresh strategies if they want to achieve their objectives.
A lot of the new ways of looking at the challenges, and some innovative approaches for finding and successfully buying a desirable company in this New Economy, have been compiled in my new eBook "Buying a California Business in the New Economy."
BizBen Sales Statistics
March sales totals by California County, found at http://www.bizben.com/stats/stats-monthly-march.php , are:
Alameda: 101, Amador: 1, Butte: 3, Contra Costa: 26, El Dorado: 18, Fresno: 47, Glenn: 4, Humboldt: 2, Kern: 23, Lake: 3, Los Angeles: 389, Marin: 1, Mendocino: 5, Merced: 12, Monterey: 9, Nevada: 5, Orange: 177, Placer: 12, Riverside: 84, Sacramento: 33, San Benito: 1, San Bernardino: 99, San Diego: 157, San Francisco: 96, San Joaquin: 16, San Luis Obispo: 37, San Mateo: 34, Santa Barbara: 12, Santa Clara: 61, Shasta: 7, Solano: 14, Sonoma: 18, Stanislaus: 28, Sutter: 13, Tulare: 10, Ventura: 18, Yolo: 4.
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 & Senior 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 925-785-3118 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 & Bulk Sale Services In California
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: 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.
|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.
|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.
|Jerome Thissen, Broker, National Franchise Sales
BROKERAGE - Specializing in the Resale of Franchise Businesses Since 1978 ASSET RECOVERY - Asset Recovery through Bankruptcy, Receivership & Foreclosure ADVISORY SERVICES - Buy-Side Representation, Valuations, Dispute Consulting, Restructuring Advisory, and Brand Development Advisory ...
|Alex Beringer, Business Broker Specialist: FedEx Routes In California
Business brokerage services specializing in FedEx Routes throughout California.
|Larry Treystman, Business Broker Specialist - Home Health, Hospice
Founder of one of the top consulting firms in the nation specializing in Home Health and Hospice. Helping guide healthcare entrepreneurs through regulations, changes and management. For Change of Ownership applications or anything else related to Home Health please call or email.
|Stewart Guthrie - Business Broker: Sacramento Area
Stewart Guthrie, Northern California business broker, brings 25 years of experience in business ownership and technical sales in a variety of industries. For 15 of the last 20 years or so, Stewart has owned, operated and sold businesses in real estate and distribution. Business brokerage services.
|Related Articles, Events, Blog Posts, Discussions, Videos, Interviews|
|4 Reasons Why Business Brokers Do Not Cooperate With Other Brokers & Agents
Despite challenges in the business for sale marketplace, some of the business brokers who make a living by facilitating a deal between buyer and seller are known to stand in the way of a completed transaction because of some outdated ideas. Too bad they put greed ahead of the needs of their clients.
|Tips For Faster SBA Loan Approvals For California Small Business Purchases
In this article on BizBen, business purchase financing advisor and SBA loan broker, consultant Peter Siegel (Business Purchase Financing Expert/Advisor & the ProBuy Program Director at BizBen) at 925-785-3118 shares his views of getting SBA loan financing faster for business purchase financing.
|Should A Buyer Be Allowed To Operate A Business Before The Close Of Escrow?
Business buyers, brokers, owner/sellers all ask this question at some point. So I decided to ask some of the top Intermediaries in the California marketplace what they thought of the idea. Most of the ProIntermediaries on BizBen agreed with me on taking early possession before the close of escrow.
|Uncover Hidden Problems In Due Diligence When You Buy A Small Business
Most everyone who's decided to buy a small business in California knows the importance of due diligence. That involves close examination of a business prior to removing contingencies. But not everyone knows how to uncover problems that are not obvious. Here are five of the most common hidden issues.
|Owner Asks: Why Is A Business Sale Kept Confidential? How Is That Done?
Recently a business owner asked me on the phone, "Why do you keep the sale of a small business confidential? Why does it matter? How do you keep the sale confidential - any good tips?" What would be your answer to this business owner's question? ProIntermediaries on BizBen discuss this topic.
|Business Sellers: Do Not Make It Hard To Buy Your Small Business: Owner Tips
Successful sellers of small businesses need a game plan to sell their California small business for maximum price and for the best terms. Peter Siegel, MBA discusses these seller strategies with BizBen Blog readers based on his experience as the lead Advisor with the ProSell Program on BizBen.com.
|Considering Hiring A Business Broker? Ask These Questions First, Then Decide
The key to finding the ideal business broker or agent and selling a small business is asking the right questions and getting the right answers back! Peter Siegel, MBA with BizBen & several top business brokers and agents in California (ProIntermediaries) contribute to this topic to assist sellers.
|Coronavirus: Advisors Discuss The Topic - Buying & Selling Small Businesses
During this time period of being "sheltered in place" we discuss strategies, best practices that business buyers, business brokers, agents, and owner/sellers are practicing or thinking about during these times of being immobilized. Also discussed are business types that may be good purchases.