Although the volume of business sales in California fell substantially throughout 2010, experiencing a 6.6 percent drop for a total of 13,329 transactions, February noted a solid gain in the number of business acquisitions.
According to BizBen.com, more than 690 California small- to mid-sized firms were sold this month, stemming from improvements in valuations, the demand for small companies and greater access to credit, and helping entrepreneurs to incorporate in California.
"While the pace of closed escrows early in the month was on track to match or exceed the sales figures for last February, when 1,002 business sales were recorded, the activity slowed the past few days," said BizBen founder Peter Siegel in a statement. "This is often what happens directly prior to a three-day weekend when buyers, sellers and business intermediaries take time off."
In addition, February business sales, which reflected every industry from retail to manufacturing, were most likely stimulated by last fall's Small Business Jobs Act, which includes more than $30 billion in lending incentives for community banks to provide small firms and investors with credit.
The report was released the same day as a study by BizBuySell.com, which found 76 percent of small company owners believe 2011 will be a good year for business sales.
Tags : ca, financial management, incorporation news, small business management
Posted: Feb 28th, 2011