Buying a Minnesota 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 MN 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 in MN:

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

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 Minnesota businesses may have obsolete inventory, dissatisfied employees or outdated distribution methods.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

Many websites offer listings of companies for sale. Minnesota listings of businesses for sale 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. The advanced search option at BizQuest.com will let you select the type of business, city and length of time on the listing, among other parameters.

Locate business brokers in MN 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 Minnesota requires.

I recommend: Faelon Business Brokers is in Golden Valley and handles mergers and acquisitions. Calhoun Companies specializes in the sale of small and medium-sized businesses throughout the upper Midwest.

Hire a Certified Public Accountant before purchasing a business in Minnesota

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: Froehling Anderson provides management advisory services to clients in the Minneapolis and St. Paul metro area. Kanne & Kanne has offices in Eden Prairie and Oakdale and provides business analysis for the purpose of obtaining outside financing.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Determine the owner's reason for selling before buying a Minnesota 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 as many lagging businesses can be revived with proper advertising.
• •  Review the physical assets of the Minnesota 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 Minnesota requires.