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California Acquisition Activity Improves in November
Published on Dec 8, 2010
Check out 'California Acquisition Activity Improves in November' at 'Time to Start Up,' the small business blog by BizFilings.
Sales of small and mid-sized businesses in California grew in November over the same time last year, with 978 total deals, compared to 954 a year ago, according to data compiled by BizBen. Although the gain is only slight, it reflects gradually improving conditions across economic sectors in California and the rest of the nation.
However, the majority of transactions occurred in smaller counties, as San Francisco, Orange, San Diego and Los Angeles counties all saw declines in acquisition activity. The culprit, according to analysts, is a steep drop in small business valuations, which makes it difficult for owners to sell or even be willing to put their company on the market.
Peter Siegel, founder and president of BizBen.com, suggests the report "shows the same pattern of cautious growth we see in other areas of the economy, including retail. We still need to see stronger fundamentals operating in the marketplace where businesses change hands."
Still, the overall growth in the sector's activity is a reassuring sign for entrepreneurs, investors and small business owners forming a corporation.