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Jan Norman on Small Business ~ News and practical tips for and by Orange County small business owners

Archive for the 'BizBen' Tag

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O.C. business sales drop 54% in October

November 2nd, 2009, 6:00 am by Jan Norman, small-business columnist

Less than half the number of small- to mid-sized businesses sold in Orange County during October compared to a year earlier, according to BizBen, a California businesses-for-sale web site.

Here are BizBen’s data for Orange and surrounding counties and for all of California (click on image for larger view):

Source: BizBen

Source: BizBen

This is the 14th straight month of year-over-year sales declines in Orange County.

Orange County’s October sales were also fewer than in September, an indication that the business market is still in a slump. Would-be buyers are still having difficulty getting bank loans for the purchase price. Fewer are able to tap home equity, another common source of capital to buy a business prior to the housing slump.

Southern California sales are down more than the state as a whole, especially Orange, San Bernardino and Riverside counties which were hardest hit by the housing and mortgage declines.

A recent survey indicated that 65% of business owners fear their businesses might fail by 2011, hardly a ringing endorsement for potential buyers. Also, Orange County taxable sales declined in the third quarter, sign that retail businesses are dicey purchases even if they are profitable.

Peter Siegel of BizBen has said not to expect a recovery in the market until next year.

Other economy stories…

Posted in: Economy • Finance • Meltdown • Top posts • • | 10 Comments »

Which O.C. city has most business sales?

October 5th, 2009, 6:00 am by Jan Norman, small-business columnist

In Anaheim, 116 privately-owned businesses have been sold through the first three quarters of 2009, the most for any Orange County city in what is shaping up as a forgettable year for  business sales, according to BizBen, a web site that specializes in California businesses for sale.

Through nine months, 1,044 businesses have been sold throughout Orange County, down 42.3% from 2008, according to BizBen statistics, which are based on county clerk’s offices and proprietary information.

Here are the sales by city through three quarters (click on image for larger view):

Source: BizBen

Source: BizBen

Note that only Costa Mesa and Villa Park have more reported sales of businesses this year than in 2008. Such sales are one indication of the state of the economy, strength of credit markets, which have been very tight for would-be business buyers for a year, and size of cities’ business community.

Other business stories…

Posted in: Economy • Meltdown • Reports • Top posts • • | 3 Comments »

Sales of O.C. businesses down 29% in September

October 1st, 2009, 6:00 am by Jan Norman, small-business columnist

The number of small to mid-sized, privately owned businesses that sold in Orange County dropped 28.9% in September compared to a year earlier, according to BizBen, a web site that specializes in California businesses for sale.

Source: BizBen.com

Source: BizBen.com

Business sales are an economic indicator that may turn positive before the job market.

O.C. sales are also down 11.5% from August, BizBen reports, based on statistics from the county as well as a proprietary formula to account for businesses that sold without going through escrow.

September’s decline was less than the 38.7% drop from September 2007 to September 2008, but are a far cry from the 103.3% leap 2006 to 2007.

“I see the traffic picking up, both in listings and (potential buyers) but we’re still in first gear,” said Peter Siegel of BizBen. “I think sales won’t get going into second gear until after the first of the year.”

A couple of factors will help, he said. Purchase loans are quite as difficult to get as they were during the credit freeze last fall. Loans to buy businesses often are government guaranteed through the U.S. Small Business Administration.

Second, Siegel said, the SBA has doubled the value it will allow on its loans for good will to $500,000 starting today.

This week economist Alan Beaulieu, a partner in the Institute for Trend Research, told 400 Orange County business executives that they ought to be looking for businesses to buy because values are now and interest rates are low.

Other business stories…

Posted in: Economy • Finance • Meltdown • Reports • Top posts • • | 2 Comments »

O.C. business sales down 35.4% in August

September 1st, 2009, 6:00 am by Jan Norman, small-business columnist

The number of Orange County businesses that sold in August declined 35.4% to 122 transactions compared to a year earlier, according to BizBen, a web site for business sales throughout California. It was the lowest number of sales in the past five years.

Here are the transactions for Orange County and surrounding counties as well as California:

biz-sales-redo

Source: BizBen

The Orange County sales dropped 3.2% from July after an uptick from June to July, BizBen statistics show.

Like other signs of economic activity, the buying and selling of small privately owned businesses has suffered during the recession. And like real estate transactions, business sales have been hurt by the freeze in the credit markets and tightening of lending standards.

“A lot of people forget that August is typically slow,” said BizBen President Peter Siegel. “It usually gets busier the week after Labor Day.”

Siegel recently surveyed business brokers statewide and said they report increased activity that suggests the market may be gradually coming back.

“Buyers are coming back into the market; sellers are coming back; lenders are loosening their standards a little,” he said.

Other economy stories…

Posted in: Economy • Meltdown • Reports • Top posts • • | 12 Comments »

Sale of O.C. businesses off 36% in July

August 1st, 2009, 6:00 am by Jan Norman, small-business columnist

The number of Orange County businesses that changed hands in July fell 36% from a year earlier, but bounced back from a dismal June, according to BizBen, a web site that specializes in California business sales.

The sale of 126 local businesses is the lowest July in five years, and the long-term trend is still significantly lower than years past:

Source: BizBen

Source: BizBen

But the 126 local businesses that sold during July is the second highest in 2009, according to BizBen data, which are collected from business brokers and county clerks throughout the state.

“The numbers are down because of the economy, but a big factor now is vacations,” said Peter Siegel who runs BizBen. “Owners are having to be more realistic about taking back some financing. I feel October-November will be good months.”

Anna Jin, who is trying to sell her own Cold Stone Creamery in Aliso Viejo, knows that these are tough times for business sellers. “It will not be easy. The banks won’t give out loans (to buyers). This is a good business but in this economy business has been down this year.”

Orange County is not alone in lower July business sales. California and surrounding counties are also experiencing declines:

Source: BizBen

Source: BizBen

The state and these counties, except for San Diego, reported more business sales in July than in June but their year-to-date sales are still down significantly from 2008.

Other business stories…

Posted in: Economy • Meltdown • Reports • Top posts • • | Post a Comment »

Business sellers ask more, get few takers

July 10th, 2009, 12:00 pm by Jan Norman, small-business columnist

Business sellers in  Orange and Los Angeles counties are asking more for their companies but there are few takers, says BizBuySell.com, a nationwide businesses for sale web site.

The median asking price in this region was $235,000 in the second quarter, 2.2% higher than in the first quarter and 4.4% more than a year earlier, according to BizBuySell’s records based on 3,666 listings from business brokers and owners who are selling their own businesses.

Here is the asking price trend (click on image for larger view):

Source: BizBuySell.com

Source: BizBuySell.com

Asking for more money seems to be wishful thinking; few are buying.

“Nationally, fewer deals are getting done,” BizBuySell reports. “Year-over-year, we are seeing a 50% drop in closed business-for-sale transactions. This is caused by many business owners deciding not to sell until the economy recovers, as well as by the challenges in getting a deal done in the market (e.g. difficulties in getting a bank loan for the buyer)

“Unfortunately for business owners who might wish to sell, this appears to be an accelerating downward trend. In Q1, the year-over-year decline was 36%.”

BizBen, a California businesses-for-sale web site, has been reporting monthly slowing of Orange County and California sales for many months.  Most recently, the sale of businesses in Orange County dropped 49%.

Other deals stories…

Other business stories…

Posted in: Economy • Mergers and Acquisitions • Top posts • • • | Post a Comment »

June sales of O.C. businesses decline 49%

July 2nd, 2009, 5:00 am by Jan Norman, small-business columnist

The sale of small, private Orange County businesses fell 48.9% in June, compared to a year earlier, according to BizBen, a web site that specializes in sales of California firms. It is a sign that financing is still difficult for potential buyers to get, and relatively few people are eager to be business owners as the recession enters its 18th month.

The continuing sales downturn is widespread:

Source: BizBen

Source: BizBen

For the first six months, the number of O.C. businesses that sold dropped 46% from the same period a year earlier.

The downward slide in closed transactions was nationwide, according to BizBuySell, a national businesses-for-sale web site, which doesn’t break out O.C. numbers. Business brokers nationwide reported to BizBuySell that second quarter sales dropped more than 50% compared to the same quarter in 2008. First quarter sales dropped 36%.

Based on BizBen data, O.C. sales of businesses dropped 39.4% in the second quarter and 52.9% in the first quarter.

“These numbers are not surprising as the economy continues to deter the consummation of business transactions at all levels,” said Mike Handelsman, general manager of BizBuySell.com. “There is no doubt that a large number of business transactions are not being closed simply due to the lack of available buyer capital and bank financing…Banks just aren’t willing to back business purchase transactions to the same level that they have in the past.”

The sales drop off in Orange County seems more related to the economy than to any seasonal trend. Until the recession, sales during the summer increased from April and May.

Other economy stories….

Posted in: Economy • Reports • Top posts • • | 1 Comment »

May sales of O.C. businesses drop 35.4%

June 1st, 2009, 5:00 am by Jan Norman, small-business columnist

For the 10th straight month, the number of Orange County businesses that sold in May was lower than the same month a year early, according to statistics from BizBen, a web site that specializes in California business sales.

Business sales also dropped in surrounding counties and statewide as people who want to buy or sell existing small to mid-sized private firms. Here are BizBen data for May:

Source: BizBen

Source: BizBen

However, for Orange County the downturn may be moderating. The number of businesses sold in May jumped 144% from April.

In fact, April appears to be an outlier because without it, monthly sales of Orange County busiensses have risen modestly each month:

  • January, 80 businesses sold
  • February, 92
  • March, 123
  • April, 87
  • May, 212

BizBen owner Peter Siegel has noticed sellers being more realistic about pricing their businesses, showing greater willingness to do seller financing. Also lenders have showed a little more willingness to make loans for a business purchase.

He predicts continued volatility in the market in coming months before the upward trend is clear.

Other economy stories…

Posted in: Economy • Finance • Meltdown • Reports • Top posts • • | 4 Comments »

April sales of O.C. businesses drop 51%

May 4th, 2009, 5:00 am by Jan Norman, small-business columnist

Just 87 Orange County small and mid-sized businesses sold in April, less than half the sales a year ago, according to data from BizBen.com, a web site that specializes in the sale of California companies.

Sales statewide and in Los Angeles and Riverside counties also declined, indicative of the continued recession and tight credit markets. However, more businesses in San Bernardino and San Diego were sold than a year earlier.

Here are BizBen’s sales statistics (click on the image for a larger view):

Source: BizBen.com

Source: BizBen.com

Orange County’s business sales were the lowest for April in at least five years. Here are the numbers:

  • 2009 — 87
  • 2008 — 176
  • 2007 — 317
  • 2006 — 277
  • 2005 — 95

Local business sales also dropped 29.3% from March, reversing a two-month trend in which sales had increased from the previous month.

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.

Other business stories…

Posted in: Economy • Meltdown • Reports • Top posts • • | 2 Comments »

Sale of O.C. businesses rebounds in March

April 1st, 2009, 6:00 am by Jan Norman, small-business columnist

The sale of Orange County businesses rebounded in March, although transactions are still sharply down from a year ago, according to data from BizBen, a web site for California businesses for sale.

In March, 123 Orange County businesses sold, a 34% rise from February, but still down 52% from March 2008. This trend is true for Orange and the surrounding counties and California as a whole.(click on chart for a larger view):

Bizben

Source: Bizben

Sales have been hampered by the recession and credit freeze with many buyers unable to get loans and less able to pull equity out of their homes to purchase businesses. The uptick in sales may be an early sign of recovery or just a continuation of erratic sales over the past year.

This chart shows the roller coaster ride of recent business sales:

Bizben

Source: Bizben

But Peter Siegel of Bizben sees the March production as the thawing of the market.

“The banks are loosening up a bit, and owners are being much more realistic about carrying back notes on their business sales,” Siegel said. “Money was so easy to get for so long that it took brokers a long time to persuade sellers to do this.”

Also helpful, he says, are sellers more willing to lowering their asking prices and more people laid off off from corporate jobs taking the leap into business ownership.

Among business brokers, “there will always be WAMs — whiners and moaners — but a lot of brokers are more upbeat,” Siegel said. “They are changing their business practices. They are doing more creative marketing, more article writing, putting photos in their listings.

“They’re getting back into the saddle of basic marketing and it’s paying off.”

Siegel projects that business sales could fluctuate in the coming months but by the end of summer the general upward trend should be evident.

Other economy stories…

Posted in: Economy • Top posts • • | 3 Comments »

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