Buying an Arizona business for sale can represent a great opportunity for investment. Buying an established business usually is much safer financially and more profitable than starting a new business because an existing business already has an established customer base, source of revenue and business operations. An existing business also may own valuable patents or copyrights.

It is often more expensive to buy businesses for sale in AZ than to start a new one, although it is generally easier to obtain financing for an existing business. Investors tend to be more comfortable with a business that has a proven performance.

There are three primary actions to perform before buying an AZ business for sale:

1. Review the tax returns and financial statements over the last few years for the business for sale. Arizona businesses can measure their growth potential with actual experience rather than conjecture.

2. Examine the current profits for small businesses for sale. Arizona businesses will have expenditures such as employees’ salaries, utilities and insurance that you must deduct from the sales revenue.

3. Inspect the operations of prospective business opportunities. Arizona businesses may have obsolete inventory, dissatisfied employees or outdated distribution methods.

Action Steps
The best contacts and resources to help you get it done

Locate a business for sale in Arizona

Many websites offer listings of Arizona businesses for sale. These listings should show the location, asking price and cash flow, among other details.

I recommend: You can search BusinessMart.com for businesses by state, and you can further refine your search by specifying the type of business you seek. Go to BizBuySell and select Arizona as the business location. You can also narrow the search parameters by selecting the business category and asking price range.

Find business brokers in Arizona to assist you in the purchase process

A broker can identify businesses that are clearly undesirable and help negotiate a price on the best candidates. A business broker also will help you obtain any licenses and permits that Arizona requires.

I recommend: The Wheatley Group is in Scottsdale and represents privately held mid-market companies in Arizona. The Arizona Business Center Consulting Group in Phoenix has experience with acquisitions of all sizes in the state.

Hire a Certified Public Accountant before purchasing companies for sale in Arizona

A CPA will need to review the financial records of any business in which you are interested. Additionally, a CPA can ensure that you file any required legal documents.

I recommend: Schmidt Westergard in Mesa provides a variety of accounting services, including business valuation for the purpose of acquisition. Morton CPAs provides business consulting services primarily for clients in Phoenix and Scottsdale.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Determine the owner's reason for selling before buying an Arizona business for sale. The owner may no longer be interested in running the business or there may be legitimate financial reasons for putting it up for sale. You will also want to review the marketing strategy for the business because many lagging businesses can be revived with proper advertising.
• •  Review the physical assets of the Arizona business for sale. You will need to know if the office equipment, machinery and other property is actually in working order. You will also want to inspect the building itself to know if it meets the health and safety standards that Arizona requires.