Buying a Mississippi 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 MS 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 Mississippi:

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

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 Mississippi businesses may have obsolete inventory, dissatisfied employees or outdated distribution methods.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

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

I recommend: Go to BizBuySell and select Mississippi as the business location. You can also narrow the search parameters by selecting the business category and asking price range. 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.

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

A Mississippi 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 Mississippi requires.

I recommend: The Burns Development Group in Ridgeland provides professional real estate services that include assessments on land, buildings and equipment of businesses for sale. Sunbelt Business Brokers of Mississippi in Jackson is locally owned and is dedicated to pairing sellers with buyers in Mississippi.

Hire a Certified Public Accountant before buying businesses for sale in MS

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: Horne CPAs & Business Advisors is headquartered in Jackson and has a business valuation group that assists clients with mergers and acquisitions. Nicholson & Company, with offices in Hattiesburg and Columbia, offers business consulting services to clients who wish to buy or sell a business.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Determine the owner's reason for selling before buying companies for sale in Mississippi. 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 also will want to review the marketing strategy for the business because many lagging businesses can be revived with proper advertising.