Buying a Colorado 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 a CO business for sale 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 businesses for sale in CO:

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

2. Examine the current profits for small businesses for sale. Colorado 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. Colorado businesses may have obsolete inventory, dissatisfied employees or outdated distribution methods.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 Colorado business for sale

Many websites offer listings of Colorado 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. MergerNetwork has an extensive database of businesses for sale in Colorado and provides a summary of each listing.

Find business brokers in Colorado to assist you in the purchase process of a business

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 Colorado requires.

I recommend: Front Range Business, with offices in Denver, Boulder and Breckenridge, specializes in acquisitions within the retail, service and restaurant industries in Colorado. First Business Brokers is in Colorado Springs and specializes in southern Colorado businesses.

Hire a Certified Public Accountant before you buy a Colorado business

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: Stark Winter Schenkein in Denver has a department dedicated to business valuation services. D.L. Heisey is in Parker and specializes in providing transition pricing services.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Determine the owner's reason for selling before buying a company for sale in Colorado. 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 Colorado 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 Colorado requires.