From Portland Business Brokers Group.
Read the agreement the buyer would inherit
Check the remaining term, renewal rights and any consent needed for assignment or a change of control. Do not assume a landlord's verbal support settles the contract.
List rent changes, deposits, repair responsibilities and guarantees. These details can affect both the buyer's costs and your obligations after closing.
Bring the property owner into the timetable
- Identify who must request consent and provide buyer information.
- Allow time to negotiate a new lease if required.
- Clarify what happens to your personal guarantee.
- Keep written evidence of approvals with closing records.
If you own the premises
Compare selling the property with leasing it to the buyer. Those choices have different cash, risk and management consequences after the business sale.
Value the operation using the rent it would actually pay under the proposed arrangement. An informal low rent can overstate earnings available to the next owner.
Keep property and company value distinct
A building and an operating company need different analysis. Make clear which assets an offer includes before comparing it with another proposal.
Ask your advisers to check the lease and property plan alongside the transaction structure. A higher business price can be less useful if it leaves an unwanted property obligation.