This article was written by Peter Siegel MBA- Founder And Administrator of BizBen.com, reprinted by permission
The total of 5,120 small and mid-sized California businesses sold so far this year is the highest number of completed transactions through the first four months of any of the past seven years. The information, posted by the BizBen Index, also notes that last month's count of 1,193 transactions represents the most April business sales in the state since 2010.
Two key factors responsible for the strong improvement in California's business for sales marketplace include improved availability of business purchase money loans and a growing sense of optimism among buyers and sellers, as the economy continues to improve. Californians are more willing to go ahead with plans involving business transfers when they notice lower unemployment and a boost in the profits and value of the state's large corporations and technology companies.
A third reason for the improved rate of business sales can be attributed to increasing use of creative business sales strategies as buyers and sellers learn about ways to overcome obstacles that might have prevented them from completing their deals over the past few years. Among those smart strategies are transactions incorporating earn-out provisions, alternative methods of financing, such as buyers assuming some of the seller's obligations to vendors, and inventory consignment plans allowing the buyer to delay payment to the seller for inventory items until they are sold. Some of these and other innovative strategies are reviewed on BizBuyFinancing (business purchase financing assistance) http://www.bizbuyfinancing.com
Large County Sales Growth
Some of the largest Southern California counties posted higher business sales totals last month compared to April of 2014. The count of 300 transactions involving Los Angeles County businesses represents a 12.36% increase compared to the 267 sales completed in April of last year. Orange County's sales total was 132 last month, a gain of nearly 6.5% over the 124 transactions posted the previous April. The sum of 78 completed transactions posted in San Diego County last April increased by about one-third to 103 sales last month. The April-to-April sales total nearly doubled in San Bernardino County to 59 deals from 29 in April 2014.
Among the largest Northern California counties posting strong sales increases last month are Santa Clara County with a total of 66 deals last month vs. 56 sales in April of last year, and San Francisco County posting 52 sales in April 2015 compared to 36 the previous April.
The total California business April sales stats by county recorded last month, available at http://www.bizben.com/stats/stats-monthly-apr.php are:
Alameda: 44, Butte: 12, Contra Costa: 29, El Dorado: 4, Fresno: 31, Imperial: 13, Kern: 13, Lassen: 1, Los Angeles: 300, Marin: 9, Merced: 3, Monterey: 15, Napa: 4, Nevada: 1, Orange: 132, Placer: 16, Plumas: 1, Riverside: 48, Sacramento: 26, San Bernardino: 59, San Diego: 103, San Francisco: 52, San Joaquin: 22, San Luis Obispo: 21, San Mateo: 21, Santa Barbara: 19, Santa Clara: 66, Santa Cruz: 10, Shasta: 10, Solano: 3, Sonoma: 34, Stanislaus: 12, Sutter: 7, Tehama: 1, Tulare: 22, Tuolumne: 1, Ventura: 20, Yolo: 8
Sales totals posted by California county over the last nine years are available at: http://www.bizben.com/stats/stats-total.php
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.
