At Sunbelt, we work with Sellers across industries and across unique circumstances. Often times, we work with a Seller who owns the underlying property where the business operates, with the intent to sell the property as well as the business.
We welcome Sellers who own their underlying real estate for many reasons. As a starting point, there is usually no third-party landlord to accommodate, which removes uncertainty from the forthcoming transaction.
More Buyers, More Bucks
Many Buyers are interested in opportunities where they can acquire a business along with the business’ real property. In many cases, these circumstances will often attract the best-qualified Buyers; those with deeper experience and resources to fund the business acquisition along with the property purchase.
Sellers should be aware that there are many types of Buyers. Some Buyers may wish to acquire the underlying property, while other Buyers prefer to simply rent the property. For this reason, it’s best if a Seller can remain flexible and potentially accommodate both types of Buyers.
A Buyer seeking to purchase the real estate will be looking for a realistic estimate of the building’s value. For this reason, a business valuation should incorporate both a Broker Opinion of Value along with a commercial real estate appraisal. Sunbelt can help on both fronts.
Count on Rent
Alternatively, a Buyer seeking to simply rent the underlying real estate will want to understand the monthly rent along with anticipated NNN/CAM charges. For this reason, it’s useful if your business is already paying a market rent for the underlying real estate (usually such rent is being paid to you personally or to a separate entity that holds the real estate on your behalf). In the event your business is not paying rent (or paying less than market rent), it’s likely that a negative addback will be applied in the valuation recast – to account for the added expense a Buyer will incur for anticipated rent.
When a Seller own’s the underlying real estate in their business, it can cast a wider net of quality potential Buyers. However, it’s wise to appeal to all kinds of Buyers. Sunbelt can help ensure that your business and property sale are handled professionally while maximizing the market potential.
Contact your “Business Broker Near Me” today.