Buying a South Carolina 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 SC 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 for sale in South Carolina:

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

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 South Carolina businesses may have obsolete inventory, dissatisfied employees or outdated distribution methods.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

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

I recommend: 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. MergerNetwork has an extensive database of businesses for sale in South Carolina and provides a summary of each listing.

Locate business brokers in South Carolina 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 South Carolina requires.

I recommend: Empire Business Brokers provides brokerage services to both buyers and sellers in upstate South Carolina. Charleston Business Brokers has extensive experience with brokering businesses in the Charleston area.

Hire a Certified Public Accountant before you buy a South Carolina business

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: Bauknight Pietras & Stormer in Columbia is experienced in business valuation services for a variety of purposes. Markel Valuation specializes in several areas, including business valuation for clients in South Carolina, Georgia and North Carolina.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Determine the owner's reason for selling before buying a company for sale in South Carolina. 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 South Carolina 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 South Carolina requires.