Dublin, CA (July 11, 2013), reprinted by permission
A total of 7,366 small and mid-sized California business for sale offerings were successfully matched up with buyers through the first half of the year, a slim increase of 1.47% over the 7,259 completed transactions over the first six months of 2012, according to the monthly report of the BizBen.com Index. The company also said last California sales total of 1,176 businesses, was down 14.2% from the 1,371 deal count recorded the same month last year.
"Last month a slowdown in the business sales rate was expected, as we sensed slightly reduced buyer pressure in the state's small business sales market," said Peter Siegel, MBA, Founder and President of BizBen.com, parent of the BizBen.com Index. A major factor in the slip in demand was encouraging news on the jobs front. Some prospective buyers have shifted their focus from buying a business to getting on someone's payroll.
"But that's a minor correction. Long term we can expect to see continued growth in the sale of small businesses throughout the state as the market responds to underlying pressures from both the demand and the supply sides."
Some of California's largest business sales markets showed substantial declines in the volume of escrows closed last month vs. June 2012. Only 247 businesses in Los Angeles County changed hands last month, a drop of 35.7% compared to the 384 deals concluded in the same period last year. Orange County business sales slipped 32.6% to 97 deals last month, from the 144 completed sales during June 2012. San Diego County also recorded a decline of 32.6% from 139 closed escrows in June 2012 to 97 for the month recently completed.
Gaining in sales figures were Alameda County, up almost 25% from 57 to 71 transactions last month. Growth in San Bernardino County business sales last month totaled 50%, from 44 to 66.
Siegel pointed out the two biggest factors needed to spur California small business sales confidence about the future of the economy and ready access to borrowed funds, "are slowly improving. Part of rising consumer confidence is a greater willingness on the part of both buyers and sellers to overcome the uncertainty that has plagued the market, and to move forward with their plans.