May 28, 2024

Preparing your business for sale and oft-overlooked real estate considerations

Preparing your business for sale and oft-overlooked real estate considerations
Eric T. Kilchenstein

There are many great resources and talented advisors available, many of them local, to assist businesses with positioning their company for sale.  Moreover, I find that the transactions involving businesses that have taken advantage of these resources prior to sale, are often smoother, faster and involve less negotiation. That said, a surprising number of the sales of businesses are ultimately held up by real estate considerations, many of them simple and which could have been abated by an earlier review and correction if done by the selling business prior to entering into definitive agreements and the buyer’s resultant due diligence.

The below are just a few basic real estate considerations that are often overlooked by businesses  and I advise you to consult your friendly, local commercial real estate attorney to review your company’s real estate, whether leased or owned, before entering into negotiations for the sale of your business.