Buying a business for sale in Utah 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 UT 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 you buy a Utah business:

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

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 Utah businesses may have obsolete inventory, dissatisfied employees or outdated distribution methods.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

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

I recommend: BizSale.com lists Utah businesses for sale and includes a separate database of unique businesses for sale and businesses you can buy for less than $100,000. MergerNetwork has an extensive database of businesses for sale in Utah and provides a summary of each listing.

Find business brokers in Utah 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 Utah requires.

I recommend: Dimensions Business Brokers in Salt Lake City is a full-service business brokerage for both buyers and sellers. United Business Brokers specializes in obtaining financing for prospective business owners in Utah.

Hire a Certified Public Accountant before you buy a Utah 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: Richard L. Dorigatti in Logan is qualified to perform business valuations for mergers and acquisitions. Larry J. Kasper is in Salt Lake City and specializes in business valuations and appraisals.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Determine the owner's reason for selling before buying a Utah 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 as many lagging businesses can be revived with proper advertising.
• •  Review the physical assets of the Utah 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 Utah requires.