Buying a Washington, D.C. 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 DC business for sale than to start a new one, although it is generally easier to obtain financing for an existing business for sale. DC investors tend to be more comfortable with a business that has a proven performance.
There are three primary actions to perform when examining a Washington, D.C. business for sale:
1. Review the tax returns and financial statements over the last few years for the business for sale. Washington, DC businesses can measure their growth potential with actual experience rather than conjecture.
2. Examine the current profits for the small businesses for sale. Washington, DC 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. Washington, DC businesses may have obsolete inventory, dissatisfied employees or outdated distribution methods.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 business for sale in Washington, DC
Many websites offer listings of companies for sale. Washington, DC listings of businesses for sale 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. You can search
BusinessMart.com for businesses by state and you can further refine your search by specifying the type of business you seek.
Locate Washington, DC business brokers to assist you in the purchase process of a business
A broker can identify businesses that are clearly undesirable and help negotiate a price on the best candidates. Washington, DC business brokers also will help you obtain any licenses and permits that the state requires.
I recommend: Bay Business Brokers provides buyer services for first-time and corporate buyers in the DC area.
Adams, Neal & Associates is in Washington DC and specializes in business valuations.
Hire a Certified Public Accountant before purchasing a business for sale in Washington, DC
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 related to a Washington, DC business sale.
I recommend: Denburg & Low has an office in Washington, DC and provides business valuation services.
Goodman and Company provides Maryland, Virginia and Washington, DC clients with merger and acquisition services.
Tips & Tactics
Helpful advice for making the most of this Guide
- Determine the owner's reason for selling before buying a Washington, DC 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 because many lagging businesses can be revived with proper advertising.
- Review the physical assets of Washington, DC business opportunities 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 Washington, DC requires.
The official source of Washington, D.C. Business for Sale is
the Washington, D.C. Business for Sale page at Business.com
Related Resources from Business.com
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