Buying a Wisconsin 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 WI 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 companies for sale in Wisconsin:

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

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 Wisconsin businesses may have obsolete inventory, dissatisfied employees or outdated distribution methods.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

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

I recommend: 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. Go to BizBuySell and select Wisconsin as the business location. You can also narrow the search parameters by selecting the business category and asking price range.

Find business brokers in Wisconsin to assist you in the purchase process of a business

A Wisconsin business 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 Wisconsin requires.

I recommend: Acquisition Business Advisors is in Brookfield and specializes in acquisitions in the manufacturing and distribution sectors. Ed Krajcir of the Sunbelt Network serves prospective business buyers in Waukesha County.

Hire a Certified Public Accountant before buying a business for sale in Wisconsin

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: The Neal Group in Greenfield specializes in advising business owners in Wisconsin. Circore Business Solutions is in Milwaukee and offers business valuation services.

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 Wisconsin. 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.