Buying a Massachusetts 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 MA 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 MA:

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

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 Massachusetts businesses may have obsolete inventory, dissatisfied employees or outdated distribution methods.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

Many websites offer listings of Massachusetts 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. 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.

Locate business brokers in Massachusetts 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 Massachusetts requires.

I recommend: Ascend Business Brokers is a full-service business broker that provides a range of services for small and medium businesses throughout New England. iMerge Advisors is in Boston and focuses exclusively on the Internet sector.

Hire a Certified Public Accountant before purchasing a business for sale in Massachusetts

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: Cohen Cohen & Co. is a small firm in Boston with specific experience in business valuation. Andrew M. Zuroff is in Jamaica Plain and offers merger and acquisition accounting services to clients in Massachusetts.

Tips & Tactics

Helpful advice for making the most of this Guide

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