Drop in Sales of California Small Businesses in August Reported By BizBen Index

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The number of small and mid-market California businesses sold last month declined to a near low for the year, partly a result of the late-summer vacation season, during which many small business owners/sellers and their advisors are not available to make deals and close escrows. A report just released by the BizBen Index reveals 1,047 small businesses were sold in August 2010, down about 19% compared to the 1,298 completed deals during the previous month.

There are a few key factors needed for a robust level of small business sales. Among them is a healthy economy in which entrepreneurs are optimistic about the future. Another is willingness of business lenders to provide financing needed to complete transactions. Unfortunately, there is a shortage of these factors in the current marketplace for business sales.

The count of small and mid-sized California business for sale listings sold in August was the second lowest monthly total of the year, with just 1,047 companies changing hands.

The figure represents a drop of nearly 20% from the 1,298 small business sales in July 2010, according to the BizBen Small Business Index. Monthly tracking and reporting on small business sales throughout the state, conducted by the BizBen Index, has provided Californians with this leading small business economic indicator for the past 10 years.

“We can attribute some of the slowdown in sales to the late summer vacation season, when many owners of small businesses and their advisors were taking time off from business and they weren't available to negotiate or complete transactions,” said Peter Siegel, MBA, Founder and CEO of BizBen.com

Siegel noted, “There are a few key factors needed for a robust level of small business sales. Among them is a healthy economy in which entrepreneurs are optimistic about the future. Another is willingness of business lenders to provide financing needed to complete transactions. Unfortunately, there is a shortage of these factors in the current marketplace for business sales.”

He added, however, “we expect to get more positive feedback from potential business buyers and small business owners and their advisors as we move into the fourth quarter, when business activity and small business sales traditionally improve.”

Nearly all of California’s most populous counties posted declines in small business sales in August compared with the previous month. Only 253 deals closed in Los Angeles County, a drop of about 28 percent from the totals registered in July. Orange County figures showed 106 August sales, down from the 112 small business transactions completed in July.

The 84 small business sales recorded in San Diego County in August was among the county’s lowest monthly figures of the year. August was the worst month in 2010 for activity in San Francisco where only 21 transactions were completed. That’s a drop of about 54% from the 46 small business sales in August 2009.

Santa Clara County’s sales figures last month showed improvement over the results from August of last year. The 73 closed small business escrows in August 2010 was among the county’s highest monthly totals this year, a 20% gain from the 61 completed transactions recorded in Santa Clara County during August 2009.

The BizBen Index August report on the sale of small businesses in California, by county, (available at the August sales page) is as follows:Alameda: 61, Amador: 2, Butte: 5, Calaveras: 3, Contra Costa: 37, El Dorado: 3, Fresno: 27, Glenn: 1, Humboldt: 1, Imperial: 1, Kern: 18, Kings: 1, Lake: 1, Los Angeles: 253, Madera: 1, Marin: 5, Mendocino: 1, Merced: 8, Monterey: 15, Napa: 1, Orange: 106, Placer: 9, Riverside: 36, Sacramento: 26, San Bernardino: 52, San Diego: 84, San Francisco: 21, San Joaquin: 20, San Luis Obispo: 16, San Mateo: 24, Santa Barbara: 13, Santa Clara: 73, Santa Cruz: 8, Shasta: 6, Solano: 4, Sonoma: 24, Stanislaus: 20, Sutter: 4, Tehama: 4, Tulare: 20, Tuolumne: 4, Ventura: 20, Yolo: 8BizBen has been an important factor in California’s sale of small and mid-sized businesses since 1994. It is comprised of 1) BizBen.com, a vibrant online market offering 7,000+ California businesses for sale (with 200 new listings added daily), plus valuable information and ideas provided through a daily blog, webinars, articles and online radio programs; 2) BizBen Network of 16,000 business buyers, 4,000 business owners/sellers, 1,800 brokers, agents and intermediaries, and 600 advisors/resource providers; and 3) http://www.bizben.com/stats/stats-total.php [BizBen Index

which gathers small business sales data throughout the state and provides vital, up-to-the-minute statistics regarding the sales of small and mid-sized California businesses.

To get more information about the company or about buying and selling small California businesses, to join the BizBen Network, or for a free consultation, phone Peter Siegel at 866-270-6278.

BizBen.com is also available via Twitter (bizbenlistings), FaceBook (bizbenbusinesslistings) and LinkedIn (in/bizbenlistings).

Contact Information:

Peter Siegel, MBA
866-270-6278

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