You can find great opportunities for investment in established South Dakota businesses for sale. South Dakota 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 companies for sale in South Dakota 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 you buy a South Dakota business:

1. Review the tax returns and financial statements over the last few years when you want to buy a business for sale. South Dakota businesses can measure their growth potential with actual experience rather than conjecture.

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 South Dakota businesses may have obsolete inventory, dissatisfied employees or outdated distribution methods.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

Many websites offer listings of South Dakota 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 Dakota and provides a summary of each listing.

Find a broker to assist you in purchasing a business for sale in South Dakota

SD 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 South Dakota requires.

I recommend: The Professionals Group in Sioux Falls specializes in business valuations. Veracity Business Brokerage and Consulting brings buyers and sellers together for businesses in northern South Dakota, North Dakota and Minnesota.

Hire a Certified Public Accountant before purchasing a SD 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: Randall R. Schaap is in Yankton and provides a range of business financial services including business valuations. Williams & Company has three locations in South Dakota and is a specialist in business valuations for sales and acquisitions.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Review the physical assets of the South Dakota 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 Dakota requires.