Mergers and acquisitions, and the sales of California businesses are at the highest point since 2005. This is good news for those looking to buy and sell a business in California. According to the BizBen Index, the number of businesses bought and sold in 2014 was at a nine-year high. The BizBen Index provides an “economic indicator of small business statistics of small businesses that have been sold by the County and City within California.” The information included in the Index is obtained from small business owners, business brokers, and agents throughout the state of California.
The numbers from the BizBen Index show that more than 15,000 businesses were bought and sold in California last year. The number represents a 5% increase over the number of businesses transferred in 2013. Some counties and cities in California, however, saw a decline in business deals last year. For example, in 2014, there were 1,297 business deals in San Diego, compared to 1,336 in 2013. Once reason attributable to this decrease is the loss of business brokers in the San Diego market.
According to BizBen, several factors contributed to the uptick in business deals, including the improving economy and easier access to business loans. Peter Siegel, founder of BizBen, commented that “a sizable number of California’s business owners who’ve been ready to sell for awhile decided the time was right last year because their companies were showing better performance than two and three years ago.”
BizBen Index by the Numbers
The number of business deals each month in 2014 ranged from a little more than 1,000 to almost 1,600. April had the fewest business deals with 1,014 and October experienced the most business deals with 1,591. As expected, the counties with the largest populations also had the most business deals. The most business deals were in Los Angeles County with nearly a one-third of the transactions (4,114), followed by Orange County (1,585), San Diego County (1,297), and Santa Clara (774).
Looking forward, Siegel expects 2015 to be an even better year for business deals, especially as the economy improves and as banks becoming more willing to offer business purchase loans.
Contact a San Diego, California Business Attorney for Help In a Business Sale or Purchase
If you are looking to buy or sell a business, it is important that you contact an experienced California business attorney. Whether you are buying or selling, every business deal is unique with its own concerns and potential issues. Janathan L. Allen, APC’s experienced business purchase and sale attorneys can help you deal with these potential issues and protect you and your investment.
Contact Janathan L. Allen, APC’s experienced buy-sell agreement lawyers for a free consultation. Our office is based in San Diego, and we have offices throughout Southern California serving individuals and businesses throughout the state.