Orange County Register

The average asking sale price for businesses in Orange and Los Angeles counties increased 16.7% to $235,000 in the third quarter compared to a year earlier, according to BizBuySell, a national businesses-for-sale web site.

However, actual sales nationwide dropped 24% year-over-year, BizBuySell said, based on information from local business brokers and sales handled by the owners. That comes on the heels of a 50% decline in the second quarter.

Actual sale prices for Southern California weren’t available but the median actual sale price nationally was $149,000 in the third quarter, down 21% from a year ago.

The businesses being offered for sale in the third quarter were bigger than in the past. The average asking price was 0.78 times the company’s annual revenues, compared to 0.83 times a year ago. For example a business with annual revenues of $100,000 would be selling for $78,000 this year vs. $83,000 in 2008.

The average asking price in the third quarter was 2.99 times annual cash flow, compared to 3.02 times last year, again a reflection of a weaker sales market.

Other business investing and acquisition stories…

• Some O.C. firms finding buyers, panel says
• O.C. print company buys San Diego firm
• Private equity investments down 91% in Q3
• O.C. tech firm buys Japanese IT service
• O.C. cancer treatment firm raises $23 million
• Local security company buys Swiss tech firm
• O.C. venture capitalist: proposed law could damage industry
• O.C. home electronics firm sells off Swiss unit

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