Buying a MO 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 Missouri business 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 company for sale in Missouri:

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

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 Missouri businesses may have obsolete inventory, dissatisfied employees or outdated distribution methods.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

Many websites offer listings of Missouri businesses for sale. This 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 Missouri and provides a summary of each listing. BizSale.com lists Missouri 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 Missouri to assist you in the purchase process

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 Missouri requires.

I recommend: American Acquisitions Group in St. Louis serves both buyers and sellers of mid-market businesses. Kingsely Group Business Brokers in Springfield provides brokerage services in southwest Missouri.

Hire a Certified Public Accountant before purchasing a Missouri 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: Kirkpatrick Phillips & Miller, or KPM, with offices in Springfield and Branson, provides valuations on closely held businesses for clients in southwest Missouri. Brian G. Toennies & Associates is in St. Louis and provides a ranges of business services, including helping new business owners grow their operation.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Determine the owner's reason for selling before buying a Missouri 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 the Missouri 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 Missouri requires.