Sales of small and mid-size businesses drop across California

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More businesses were sold in Los Angeles County than anywhere else in the state in 2009, but that’s still 32% fewer than the year before, according to a website that lists companies for sale.

Last year, 3,769 small and mid-size businesses in the county were sold, compared to the 5,533 sales made in 2008, according to BizBen.com. In December alone, 334 deals were completed, down from the 410 sales recorded in the county a year earlier.

The site attributed the decline to potential buyers’ limited access to capital, as banks became increasingly unwilling to make business loans and as home values plunged, leaving buyers without collateral. BizBen.com has tracked small-business sales in California for more than a decade.

Statewide, the number of small-business escrow closings dropped to 14,277 in 2009, down 34% from 21,689 in 2008.

Behind Los Angeles, San Diego County had the next highest number of deals with 1,401 in 2009, followed by the 1,336 contracts in Orange County. In Santa Clara County, 718 businesses were sold, while 713 completed deals in San Bernardino County.

Lake County, in north-central California, had two sales.

The city of Los Angeles had 1,033 completed sales in 2009. Long Beach had 193, Glendale had 94, and Torrance had 86.

-- Tiffany Hsu