For some ill-conditioned processes, small element errors due to the classical element-by-element identification cannot be tolerated and control systems based on models with such errors can suffer from poor control performances. To avoid this problem, identification under closed-loop control or iterative identification can be used. However, for higher order ill-conditioned processes, control systems for closed-loop identification are hard to design and iterative identification requires long field experiments. Here, we show that the sequential loop closing method, which is one of the systematic methods to design multiloop control systems, can be used to identify ill-conditioned processes as a part of designing multiloop control systems. The sequential loop closing identification provides control relevant models for design of control systems and can be used to accelerate the convergence of iterative methods.