Buying a business for sale in NY 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 businesses for sale in NY 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 small business for sale in New York:

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

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 New York businesses may have obsolete inventory, dissatisfied employees or outdated distribution methods.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

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

I recommend: Go to BizBuySell and select New York as the business location. You can also narrow the search parameters by selecting the business category and asking price range. 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 NY to assist you in the purchase process

New York 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 New York requires.

I recommend: Rochester-based Business Brokers New York assists business owners and entrepreneurs in a successful transfer of ownership. North Coast Partners is a full-service merger and acquisition firm that brokers businesses with revenues from $1 million to $25 million in New York and Massachusetts.

Hire a Certified Public Accountant when considering buying a business for sale in New York

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: Pangia & Company in Poughkeepsie provides business valuation services, in addition to standard accounting services. Gettry Marcus Stern & Lehrer in New York and Woodbury performs business valuations for a variety of purposes, including acquisitions.

Tips & Tactics

Helpful advice for making the most of this Guide

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