CALIFORNIA BUSINESS MINUTE
The Selling of Small Business
08-04-10
Hi, I am Tim Johnson and welcome to the California Business Minute.
The number of small and mid-sized businesses in California sold during July established
the highest monthly record sales for the year and was up nearly 21 percent over July
2009, according to figures released by Bizben.com, a Dublin-based firm that tracks
privately-held business sales throughout the state.
Increases in July occurred in large and small counties, and are partly due to the
postponement of deals originally scheduled for June closing. Some 1,298 transactions
were finalized in July, compared to 1,075 deals closed during the same period last
year, according to the figures. Last month’s businesses sold figure is ahead of the
1,090 deals recorded in June 2010.
“The good news is that entrepreneurs in California are finding other ways of doing
business if the traditional practices are not working,” Mr. Siegel says. “It’s
definitely harder this year, than in the past, to borrow the money needed to complete
a deal. But we’ve learned that a growing number of sellers are, in effect, becoming
the bank so they can make the sale.” He says that in some cases, sellers are taking
lower prices and permitting easier terms with the understanding that they’ll be able
to share in the profit as the business grows.
Among the state’s largest counties, Los Angeles recorded a higher number of sales
last month -- 352, compared to the 312 deals registered in July 2009. Sales in
Santa Clara County hit 77 in July 2010, an increase of 79 percent over the 34
deals closed in July 2009. San Francisco recorded 61 business opportunities sales
last month, a jump of about 33 percent from the 46 transactions closed in July 2009.
A small decline was recorded in San Diego County--92 deals last month compared to
96 in July of last year, and Orange County saw a drop of 11%, from 126 deals in
July 2009 to 112 in July 2010.
I am Tim Johnson and this has been the California Business Minute.
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