"Part of the reason fewer Fresno County deals closed last month is that some of the sale contracts that might have been fully executed in January were pushed into completion back in December, when possible. That’s because sellers wanted to avoid the higher capital gains tax rate they feared would be imposed on transactions with a 2013 close date," said Peter Siegel, MBA, Founder and President of BizBen.com, parent of the BizBen Index.
Siegel noted the statewide business sales count in January, totaled 1,179, 3.6% short of the 1,223 transactions completed during the same month last year.
The city of Fresno was responsible for 34 of the county transactions closed in January. Four sales were completed in both Clovis and in Reedley, and there was a sale recorded in Sanger. Fresno County sales by city, reported by the BizBen Index, are available at http://www.bizben.com/
"Although the year is off to a slower start in business transactions compared to last year, we remain optimistic that more businesses will change hands this year than in 2012," according to Siegel.
"Easier access to business purchase loans from financial institutions will be an important factor if we’re to experience a more robust business for sale marketplace throughout the state. Financial institutions aren’t handing out cash like they did before the mortgage meltdown. But many are starting to loosen up their purse strings and make loans for solid deals.
"And we’re seeing more innovative strategies being used by smart California entrepreneurs. Fresh approaches are needed to overcome some of the deal killers we’ve had to cope with in the past few years. This is a New Economy for participants in the small business for sale market in California. It comes with some new challenges. People who know how to adapt to this environment are able to enjoy a competitive advantage in the marketplace."
The long-term picture for the California small business transfer market looks "very promising," said Siegel. "More businesses are starting to become available for sale because many business owners among the large population of California baby boomers are ready to retire. And simultaneously, the demand curve is rising as more Californians become doubtful about their chances of continuous and high paying employment. They’re deciding to purchase fast food franchises, auto repair and service shops, retail stores and other small companies so they can control their financial futures."
Siegel said a small business is one that sells for $2 million or less.
The California business sales totals for January 2013, by county, are noted below and available at: http://www.bizben.com/
Alameda: 32, Amador: 7, Butte: 4, Contra Costa: 36, El Dorado: 3, Fresno: 43, Glenn: 1, Imperial: 3, Kern: 27, Los Angeles: 289, Madera: 2, Marin: 4, Mariposa: 1, Merced: 6, Monterey: 14, Nevada: 5, Orange: 129, Placer: 11, Riverside: 50, Sacramento: 36, San Bernardino: 55, San Diego: 132, San Francisco: 31, San Joaquin: 16, San Luis Obispo: 24, San Mateo: 25, Santa Barbara: 13, Santa Clara: 47, Santa Cruz: 9, Solano: 7, Sonoma: 28, Stanislaus: 27, Sutter: 4, Tehama: 7, Trinity: 1, Tulare: 11, Tuolumne: 4, Ventura: 23, Yolo: 7.
The BizBen Index figures, showing the sales rates by city and county throughout the state for the past four years are accessed at http://www.bizben.com/
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