How many businesses sold in your city in 2008?

January 2nd, 2009, 6:00 am · Post a Comment · posted by Jan Norman, small-business columnist

The sale of businesses in Orange County declined by almost 30% in 2008, reflecting a tight credit market that made it difficult for would-be buyers to get loans.

In the past 12 months, 2,274 privately-owned businesses sold countywide, according to BizBen, a Web site specializing in California businesses for sale.

Statewide, 21,689 businesses sold, down 17.3% from 2007.

Most Orange County cities also experienced slower business sales. Here is BizBen’s breakdown by city (click on chart for a larger image):

Countywide sales actually picked up from November, which was the lowest activity since April 2005, according to BizBen. The 151 sales were up 54% from November, but still down 31% from a year earlier.

O.C. business sales throughout 2008 have seemed to follow the pattern housing sales set earlier. As long as home sellers insisted on high prices, buyers stayed away. As prices dropped, sales rose.

A national businesses-for-sale web site, BizBuySell, has reported that asking prices in Southern California (no, O.C. breakout) have gone up as sales dropped. Click here to read about it. Does the uptick in December sales foretell lower asking prices on BizBuySell’s fourth quarter report that will be released later?

BizBen gets its numbers from county clerks, business brokers, Web site activity and a proprietary method to account for sales that don’t go through escrow.

“Typically (business buyers and sellers) want to wrap things up before the end of the year,” said Peter Siegel, president of BizBen.

Serious sellers have had to finance their deals because loans are so difficult to get, he added. But many just sat on the sidelines and may try again after the new year.

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