You can find a great opportunity for investment in an established business for sale. Maryland 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 a MD 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 a business for sale in Maryland:

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

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 Maryland businesses may have obsolete inventory, dissatisfied employees or outdated distribution methods.

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

Find a Maryland business for sale

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

I recommend: MergerNetwork has an extensive database of businesses for sale in Maryland and provides a summary of each listing. BizSale.com lists Maryland businesses for sale and includes a separate database of unique businesses for sale and businesses you can buy for less than $100,000.

Locate business brokers in Maryland to assist you in the purchase process of a business

MD 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 Maryland requires.

I recommend: Harvest Associates has offices in Baltimore and Bethesda and specializes in traditional businesses worth at least $500,000. Business & Commercial Ventures brokers the sale of small and medium businesses in Baltimore and the surrounding area.

Hire a Certified Public Accountant before closing a MD business sale

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

I recommend: E. Cohen & Co. in Rockville provides business valuation, in addition to other accounting services. KAWG&F has several locations throughout Maryland and offers business valuation and consulting services.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Review the physical assets of the company for sale in Maryland. 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 Maryland requires.