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Boom in Sale of San Francisco's Small Businesses

A total of 62 small and mid-sized businesses changed hands last month in San Francisco, a substantial gain from the 34 deals closed during January of last year. An increase also was reported statewide by the www.BizBen.com Index.

"We expect to see a more robust market in business sales during 2011 than we have the past couple of years," said Peter Siegel, MBA, President and Founder of BizBen.com. He noted that improvement is anticipated, in part, "because of the pent-up demand for businesses. Additionally, buyers and sellers are learning to adapt to this market."

As an example, according to Siegel: &l dquo;We see more sellers helping to finance their deals when the banks decline loan applications."

Figures showing some of the history of business transfers in San Francisco are available at the BizBen.com San Francisco sales statistics page.

The BizBen.com Index also reported that statewide sales last month increased to 1,248 deals, up about 15% from the 1,074 count of closed escrows for the same period last year. Results in the largest counties were mixed, with Los Angeles County recording 277 deals, a decline from 292 completed escrows the previous January, and Santa Clara County registering a 30% drop to 58 transactions from 83 deals completed in January 2010. Showing growth in sales were Orange County, with 142 sales last month compared to 96 during January of last year, and San Diego County, where 118 transactions represent a jump from the 68 total of January 2010.

Siegel noted that growth in the state's small business sales activity can be attributed, in part to the fact that "sellers are starting to come around, getting more realistic about current business values along with understanding the need to provide financing in order to secure a transaction."

The BizBen.com Index January report on the sale of small businesses in California, by county, is as follows:

Alameda: 42, Butte: 8, Contra Costa: 35, El Dorado: 11, Fresno: 52, Humboldt: 5, Imperial: 1, Inyo: 1, Kern: 47, Kings: 1, Los Angeles: 277, Madera: 4, Marin: 13, Mendocino: 1, Merced: 6, Monterey: 22, Napa: 3, Orange: 142, Placer: 14, Riverside: 43, Sacramento: 34, San Bernardino: 58, San Diego: 118, San Francisco: 62, San Joaquin: 5, San Luis Obispo: 9, San Mateo: 19, Santa Barbara: 18, Santa Clara: 58, Santa Cruz: 21, Shas ta: 4, Solano: 6, Sonoma: 27, Stanislaus: 13, Sutter: 8, Trinity: 1, Tulare: 17, Ventura: 35, Yolo: 4, Yuba: 3.

BizBen has been an important factor in California's sale of small and mid-sized businesses since 1994. It is comprised of 1) www.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) BizBen Index which gathers business sales data throughout the state and provides vital, up-to-the-minute statistics regarding the sales of small and mid-sized California businesses.