Small businesses for sale in PA can make great investments. Pennsylvania businesses that are active have 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 Pennsylvania 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 Pennsylvania:

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

2. Examine the current profits when looking at a business for sale. Pennsylvania businesses will have expenditures such as employees’ salaries, utilities and insurance that you must deduct from the sales revenue.

3. Inspect the operations when looking for Pennsylvania businesses to buy. These businesses may have obsolete inventory, dissatisfied employees or outdated distribution methods.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 Pennsylvania business for sale

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

I recommend: BizSale.com lists Pennsylvania businesses for sale and includes a separate database of unique businesses for sale and businesses you can buy for less than $100,000. 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 Pennsylvania to assist you in the purchase process

PA 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 Pennsylvania requires.

I recommend: Franklin Acquisition Advisors in Emmaus specializes in the acquisition of private, closely held businesses. CK Business Consultants specializes in sales, acquisitions and appraisal services for businesses in the petroleum and propane industries.

Hire a Certified Public Accountant before purchasing a PA 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: Dennis Piper Associates is a full-service accounting firm in Pittsburgh that assists clients with business acquisitions. Elko and Associates in Media provides business valuation services for mergers and acquisitions.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Review the physical assets of the Pennsylvania 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 Pennsylvania requires.