BizBen Index Shows Boost in California Business for Sale Deals, But Activity Still Below Par

    DUBLIN, CA, April 10, 2013 /24-7PressRelease/ -- The 4,006 deals for California's small and mid-sized business for sale offerings during the three months of 2013 represents the highest first quarter volume of business transfers in five years. But the figures still fall far short of the pre-recession totals, according to business transfer figures collected from state records and other sources and reported by the BizBen Index.

"While the increase in the number of small business sales is a positive sign, it's a mistake to believe we're about to experience full recovery of the marketplace where California businesses are bought and sold. In other words, don't expect activity in this market soon will return to 'normal'," said Peter Siegel, MBA, Founder and President of BizBen.com, parent of the BizBen Index. "The combination of more baby boomer owners trying to retire, and an increase in the numbers of people trying to buy businesses as an alternative to the disappointing job market, should result in substantial increases in transactions. But just like participants in most other economic sectors, California's small business buyers and sellers are confronting the New Economy. It's an economy in which many of our familiar methods of achieving our objectives are not as effective as they used to be."

Behind by 29%

Siegel noted that the first quarter figure of sold businesses is up almost ten percent from the 3,652 transactions completed during the first three months of 2012. "But look at where we are, with four thousand deals, compared to the total of 5,643 transactions successfully closed during the first quarter of 2008! We still are behind where we were five years ago by 29%.

"This suggests that over the past five years, 29% of the growing population of baby boomer owners who wanted to sell their businesses have been unable to do so. And 29% of the increasing number of Californians unable to find secure and suitable employment--people who may have been able to take over those businesses--still are working for someone else or are among the 9.6% of the state's workers who are unemployed.

Gains in Large Counties

Many of California's largest counties contributed to the growth in sales so far this year. In Los Angeles County, the 1,048 deal count in the just-completed quarter is 13.4% ahead of the first quarter of 2012 total of 924 transactions. Orange County recorded 434 deals for the first 2013 quarter, up 23% from 351 sales concluded in the first three months of last year. San Diego County small business sales growth climbed 29% from 300 in the January through March period last year to the 387 total so far this year.

Among large Northern California counties are Santa Clara, reporting 168 closed business sales during the past three months vs. 146 transactions for the same 2012 period, and San Francisco, where 161 businesses changed hands in the first 2013 quarter, a slight increase from the 156 deal count for the same period last year.

Good News

"The good news is that more and more entrepreneurs are learning how to overcome some of the problems that have stalled business sales," said Siegel. "Smart buyers are dealing with what has been one of the major problems--access to capital needed to complete deals--by leveraging the rising value of their homes. Either they convert growing home equity directly into cash or use it as security to support bank, or seller "carry back" loans.

"And a number of buyers are learning to draw on their retirement accounts for purchase funds or working capital without triggering a taxable event. But this is not a DYI project. The rollover of funds from a tax deferred account and used to buy a business needs to be done correctly in order to avoid taxes and penalties."

More details about this and many other strategies helpful in buying businesses in this challenging market are covered in Siegel's just-released ebook, "Buying a California Business in the New Economy" It offers advice for buyers determined to find and buy a good business, and seeking useful information and ideas to help achieve that goal.

BizBen Index Sales Stats

March sales totals, by county, found at http://www.bizben.com/stats/stats-monthly-mar.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: www.bizben.com/stats/stats-total.php

The BizBen.com website features more than 8,000 California businesses for sale and businesses wanted postings, along with offerings of new franchises and business opportunities. Since 1994 this niche online network and service has proved a valuable tool for thousands of California business buyers, small business owners/sellers, intermediaries, and advisors. The site also includes articles, resources, news and tips, and a daily blog. For the past 16 years, its BizBen Index has collected and reported on business sales statistics, by county and city, throughout the state.

For More Information
Contact: Peter Siegel
Phone: 866-270-6278

BizBen.com is available via:

Twitter: twitter.com/BizBenInfo
Facebook: https://www.facebook.com/pages/BizBen/92902823120
Linkedin: http://www.linkedin.com/company/bizben
Google+: https://plus.google.com/u/0/b/107792038677882046286/107792038677882046286/posts

BizBen.com is a clearinghouse of thousands of small businesses for sale in California. Over 200 new business for sale listings are added daily. The site also features articles, daily blog postings, educational events, directories of resources, brokers, agents, and advisors. For further information, please contact Peter Siegel at BizBen - 866-270-6278. Visit our site at http://www.BizBen.com

# # #