California Small Business Are Being Absorbed

LOS ANGELES—The sales of small and mid-sized businesses are in the rise in California. In March, the State of California saw a record number of small business transactions, and the City of Los Angeles alone recorded significant increases in transactions, up 4.1% from the previous month and 4.4% year-over-year, according to BizBen.com, an index that records California's small and mid-sized business data.

“Approximately 403 small businesses were sold in the Los Angeles County Area out of 1,553 total overall sales of small businesses in the entire State of California,” Peter Siegel, founder and president of BizBen.com tells GlobeSt.com. “I am seeing more activity in the overall marketplace with all participants in transactions.” Those participants include business buyers, business sellers, business brokers and agents.

While this is a month-over-month and year-over-year increase, Los Angeles small business transactions peaked in January 2017 with 443 total recorded. Of those, the City of Los Angeles has the most small-business transactions recorded, according to Siegel, with 100 total transactions in the month of March. The second highest ranked city was Torrance with only 16 small business transactions. In the State of California, there have been 1,553 small business transactions already this year, and more than 1,200 have occurred in Los Angeles County.

The rise of small business transactions has some key economic implications, namely that it suggests an increase in sentiment from both the buyers and the sellers of small businesses. However, Siegel also outlined several other economic factors that affected the sales of small businesses, including the stabilization of interest rates, which have made it easier for buyers to obtain financing, steady home prices and the fact that “SBA loan financing is easier to obtain to buy a business.”

BizBen.com highlighted 20 of the most popular business types traded in the month of March. Branded gas stations and car washes topped the list, followed by automated laundry mats. Interestingly, smoke and vape shops and medical marijuana dispensaries also made the list, ranked 14 and 16 respectively. This is a trend we are likely to see more in California following the recent legalization of marijuana. Restaurants also dominated the list, with everything from full-service restaurants to fast-food chains and pizza restaurants. The rise of restaurants has been a clear trend in the retail sector and has become an Internet resistance tenant for shopping centers, so it isn't surprising there has been interest in these business models.

LOS ANGELES—The sales of small and mid-sized businesses are in the rise in California. In March, the State of California saw a record number of small business transactions, and the City of Los Angeles alone recorded significant increases in transactions, up 4.1% from the previous month and 4.4% year-over-year, according to BizBen.com, an index that records California's small and mid-sized business data.

“Approximately 403 small businesses were sold in the Los Angeles County Area out of 1,553 total overall sales of small businesses in the entire State of California,” Peter Siegel, founder and president of BizBen.com tells GlobeSt.com. “I am seeing more activity in the overall marketplace with all participants in transactions.” Those participants include business buyers, business sellers, business brokers and agents.

While this is a month-over-month and year-over-year increase, Los Angeles small business transactions peaked in January 2017 with 443 total recorded. Of those, the City of Los Angeles has the most small-business transactions recorded, according to Siegel, with 100 total transactions in the month of March. The second highest ranked city was Torrance with only 16 small business transactions. In the State of California, there have been 1,553 small business transactions already this year, and more than 1,200 have occurred in Los Angeles County.

The rise of small business transactions has some key economic implications, namely that it suggests an increase in sentiment from both the buyers and the sellers of small businesses. However, Siegel also outlined several other economic factors that affected the sales of small businesses, including the stabilization of interest rates, which have made it easier for buyers to obtain financing, steady home prices and the fact that “SBA loan financing is easier to obtain to buy a business.”

BizBen.com highlighted 20 of the most popular business types traded in the month of March. Branded gas stations and car washes topped the list, followed by automated laundry mats. Interestingly, smoke and vape shops and medical marijuana dispensaries also made the list, ranked 14 and 16 respectively. This is a trend we are likely to see more in California following the recent legalization of marijuana. Restaurants also dominated the list, with everything from full-service restaurants to fast-food chains and pizza restaurants. The rise of restaurants has been a clear trend in the retail sector and has become an Internet resistance tenant for shopping centers, so it isn't surprising there has been interest in these business models.