You can find great opportunities for investments in established companies for sale in Iowa. Iowa businesses that are active have 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 company for sale in Iowa 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 a business for sale in Iowa:

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

2. Examine the current profits of a business for sale. Iowa 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. Iowa businesses may have obsolete inventory, dissatisfied employees or outdated distribution methods.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 an Iowa business for sale

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

I recommend: MergerNetwork has an extensive database of businesses for sale in Iowa and provides a summary of each listing. BusinessBroker.net allows you to select the business location by state, and you may also specify an industry and asking price range in your queries.

Find brokers to assist you in buying an IA business for sale

IA business brokers 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 Iowa requires.

I recommend: Ruhl & Ruhl Business Brokerage is a business broker in Bettendorf that has a partnership with a commercial real estate company. Henderson Business Group in Des Moines is dedicated to helping clients in the Midwest acquire their own business.

Hire a Certified Public Accountant before purchasing an Iowa 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: Hogan Hansen has four offices in Iowa and provides a variety of accounting services, including business valuation. Taylor, Rees, Beckey & Company has an office in Muscatine and has an accountant that specialize in business valuation.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Review the physical assets of the Iowa 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 Iowa requires.