Orange County Register

The sale of Orange County businesses declined 45.2% in February, compared to a year earlier, according to data provided by BizBen.com, a web site that specializes in sales of California privately owned, small and mid-sized businesses.

Sales also dropped in surrounding counties and throughout California. Here are the February numbers (click on the image for a larger view):

Source: BizBen.com

It is the seventh straight year-over-year monthly decline. However, the 92 businesses that sold in February was an increase from January when only 80 businesses in Orange County sold.

It’s too early to consider whether that one-month increase is the beginning of a turnaround in the market. Throughout 2008 the number of sales zig zagged up and down just about every month.

And the underlying factors that would need to improve are still problematic for would-be buyers. Consider:

• Consumer confidence is still in the pits. Rasmussen Reports Consumer Index throughout February showed confidence near recent lows with 67% saying the economy is getting worse.
• Almost 75% of lenders tightened their standards for small-business loans, one source of capital to buy a business, in the fourth quarter, according to the Office of Advocacy in the U.S. Small Business Administration.
• Home equity, another frequent source of capital to buy a business, is still down. Home prices are lower in 78 of Orange County’s 83 ZIP codes.
• Businesses have been piling on debt, indicating they might not be valued by would-be buyers.

Other economy stories….

• Stimulus act gives modest help to small-business
• Fewer new businesses a drag on economic revival?
• Poll: Are your finances getting better or worse?
• O.C. company says Chase, WaMu stiffed it for $225,000
• State tax hikes would hit businesses hard
• Local small-business loans down 66%
• Layoffs can hit hard … and sometimes softly (work chatter)
• Calif. unemployment hits 10.1% in Jan.
• Is Obama mortgage deduction cap a good idea?
• O.C. to get $7.7 million for jobless services

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