Los Angeles is a city with a history – and future – of huge business success. For business owners that have contributed to that history, the opportunity to exit well in LA is assured thanks to the high demand among business buyers. The opportunity is here, and with the right guidance and advice, anyone selling a business in Los Angeles could be in a strong position to optimize their exit and achieve a successful deal.
Hollywood glamour aside, the city is highly respected for its impressive tourism, entertainment and aerospace industries. As a Los Angeles business owner, you’ll know that there’s an awful lot more to this city. But this reputation certainly makes it a sought-after business location, which is great news for anyone selling a company in LA.
Setting the Scene
The gross domestic product of Los Angeles has, in the last 2 years, broken through the $1 billion barrier. That is an astronomical figure. New York City and Tokyo are the only cities on the globe that exceed it. But that big number isn’t all coming from big business…
LA is a great town for small firms to prosper. For a leading global city, ground rent is remarkably low. Transport links and shipping opportunities bring expansion within reach. Los Angeles also boasts an impressive score of 98.65% on the Paychex|IHS Small Business Jobs Index, with a 0.42% rise over 2018, indicating a strong, and strengthening, job market for businesses with fewer than 50 employees.
These factors all demonstrate the positive atmosphere that exists in Los Angeles for small businesses. That’s always going create opportunities and attract business buyers, from local firms set on expansion, to prominent private equity firms. With buyers hovering, LA offers a great environment for anyone looking to sell their business.

The LA Success Story
If Los Angeles’ economy were a country, it would have the 18th largest in the world. A good portion of that comes from the traditional core industries that we associate with the City of Angels – Tourism, Entertainment and Aerospace. It’s a city that’s on the bucket list of keen travelers from all over the globe, partly due to that other mainstay of its economy – the movies. In fact, the Film & TV industry employs over 159,900 people, and generates receipts of $55.9 billion. And with Boeing and Lockheed Martin calling LA home, its Aerospace & Defense credentials are incredibly solid.
But beyond these big three, there are significant industry clusters around such sectors as:
- Biosciences,
- Transportation,
- Education,
- Digital Media,
- Creative Design Industries,
- Food Manufacturing,
- Marketing,
- Publishing,
- Fashion & Lifestyle,
- Trade & Logistics.
Businesses also benefit from great support in the city too. The Foreign Trade Association and the World Trade Center Association Los Angeles are based in LA and both work to stimulate business and investment opportunities and international trade in the city. With a thriving infrastructure and established industry support in place, business buyers view Los Angeles as a hotspot for potential acquisitions.
The People Playing their Role
How is Los Angeles able to support these thriving industries? The answer lies with its people. If one thing ties together all the industries that LA is known for, it’s talent – and that’s a resource that this city has in abundance.
In terms of sheer numbers, there is a huge pool for employers to dip into. The 5-county area around the city has a population of 17.9m residents, a work force of 8.8m and the U.S. Census Bureau is predicting further significant population growth by 2025.
This corner of California also provides businesses with a particularly well-trained work force. There are 121 higher education facilities in LA County, including internationally renowned universities such as Caltech, UCLA, and USC. The city also benefits from Workforce Investment Boards and a State Employment Training Panel as well as community colleges that all work with companies to meet the skills required by local industries.
For small businesses already operating in Los Angeles, there is plenty of support on offer from an established network of small business development centres. Small Tech firms benefit from LARTA, the Los Angeles Regional Technology Alliance, with those in the biosciences sector also aided by the Southern California Bio Medical Council.
Reasonably priced accommodation, an enviable quality of life and near-perfect weather all mean there will always be a healthy supply of great people for the small businesses of Los Angeles. And people are an essential business resource.
Talent acquisition is a significantly strong driver for the M&A market. With skilled workers a precious commodity in the current climate, if your company boasts a talented team, it increases the value for prospective buyers. For cities littered with gifted workforces like Los Angeles, selling a business potentially becomes a more valuable proposition.
Los Angeles: A Progressive City in Every Sense
People and businesses alike are attracted to the city for its progressive culture and can-do attitude. LA is the model of a modern cosmopolitan city – inclusive, diverse and with a spirit of innovation that seems to characterize the entrepreneurship that propels its small businesses.
Culturally, Los Angeles is the jewel of the west coast, hosting many cultural venues and institutions. All tastes are catered for here, and such a buzz of cultural activity makes for a vibrant city, both culturally and economically.
Infrastructure and Transport in LA
The city and county of Los Angeles are served by no fewer than six commercial airports, including LAX – the 13th biggest airport in the world by cargo volume, serving 43 international carriers and all major freight lines.
In terms of marine traffic alone, the Los Angeles area is one of the busiest places on the globe, with the seaports of Los Angeles and Long Beach the first and second ranking ports in the whole of the US in terms of cargo tonnage and container traffic.
Los Angeles is also well connected by rail and served by two carriers. Proximity and efficient transport links mean that LA has fantastic access to markets in San Diego and up through Northern California, and interstate with Arizona and Nevada.
These transport links represent an opportunity for expansion on a national and international level for small businesses in the area. Business buyers appreciate this, and when they examine acquisition opportunities here, the capacity that LA businesses have to expand is a significant enticement for them.