Yes, Merger Mania Includes the Little Guy
One of the big stories of the past year has been merger mania in corporate America. But what about the little guy? A report released by a Newport Beach firm that specializes in brokering sales of mom-and-pop businesses indicates that small firms are in demand as well.
The average sales price negotiated by VR Business Brokers rose 8% nationwide last year to $141,000 from $131,000 in 1996. In Orange County, the average sales price rose about 20% from the year before and the number of sales doubled, said Steve Benson, owner of the VR franchise in Huntington Beach.
The firm handles transactions involving small retail, food and liquor stores, repair shops, cleaning services and other small businesses. “It’s a great time to buy or sell a business,” said Benson. “This is probably the most encouraging economic market we’ve been in in 10 years.”
VR President Cathy Vallevieni attributes the bigger sales numbers to “the fact that businesses are showing overall higher profits, sellers’ expectations are more in line with marketplace reality, and buyers are more willing to buy a business because of their renewed confidence in the economy.”
Patrice Apodaca covers economic issues for The Times. She can be reached at (714) 966-5979 and at patrice.apodaca@latimes.com
