Buying an Illinois 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 an Illinois 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 Illinois:

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

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 Illinois businesses for sale may have obsolete inventory, dissatisfied employees or outdated distribution methods.

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

Locate an Illinois business for sale

Many websites offer listings of Illinois companies for sale. A listing for an Illinois business for sale by owner should show the location, asking price and cash flow, among other details.

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

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

An Illinois business 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 Illinois requires.

I recommend: Synergy Brokers is in Springfield and brokers businesses in central and southern Illinois. Sperry & Associates has extensive experience with both the buy and sell side of business brokering.

Hire a Certified Public Accountant when you are considering buying an Illinois business for sale

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: Kutchins, Robbins & Diamond in Schaumburg specializes in valuation of a business for sale. Chicago is home to BIK & Co. which has specific experience in structuring the price of a business for purchase or sale.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Determine the owner's reason for selling before buying businesses for sale. Illinois business owners may no longer be interested in running the business or there may be legitimate financial reasons for putting it up for sale. You also will want to review the marketing strategy for the business because many lagging businesses can be revived with proper advertising.