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Selling Your Business with Real Estate - 3 pointers

Posted by Richard Ludlow

Fri, Jan 14, 2011 @08:54 AM

Selling your business, especially when real estate is included, is a large undertaking. Fortunately, you have Stony Hill Business Brokers to assist in the process. Here are a few key points to think about prior to making that decision:

1- What is the fair market value of my real estate (building, office condo, warehouse, land, etc.)?

A comparative market analysis is good, an appraisal is better. Use a licensed PA or NJ realtor that specializes in commercial or industrial real estate for a solid CMA. Only a licensed commercial appraiser can give you a commercial real estate appraisal. Stony Hill Business Brokers has a licensed real estate agent on staff whose professional background includes years of experience in commercial and industrial real estate.

2- What rent have you been paying yourself or what is the debt service on your real estate loan?

The rent you are paying yourself or your current debt service on your mortgage are important factors if you decide to keep your real estate investment and lease it out to the party that purchases your business. Any lease payment above your monthly rent/mortgage payment would be deducted from your current cash flow and could impact your sale price. Your Stony Hill broker is aware of this fact and will always work with you to determine the best course of action prior to executing an engagement agreement.

3- Is my business broker skilled in the real estate market in addition to the business brokerage climate?

Many business brokers act on behalf of their clients in the sale of both the business and the real estate without being qualified to do so. At Stony Hill Business Brokers, we have years of commercial and industrial real estate experience behind us and we are aware of current market conditions and trends.

 

If you have any questions about selling your business with your business real estate, please do not hesitate to contact Brian Reifer. Brian will be glad to answer your questions or provide a free business valuation, including a real estate CMA.

by Brian Reifer, Partner

Topics: selling business action plan, business valuations, business brokers

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Do you own your own business?

The US economy is driven by entrepreneurs - small and mid-market businesses, more than 20 million of them, many of them privately-owned. It is often difficult for owners to convert all of their hard work and ingenuity into an equity event. It is a complex and time-consuming process. Stony Hill Business Brokers has the experience and expertise to assist with selling a private business successfully.

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Is it time for a change?

All of the partners at Stony Hill Business Brokers have been entrepreneurs in private businesses and have had experience managing and selling their businesses. We understand the grind of running your own show and the uncertainty of getting the most value for the business.

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Are you looking for guidance?

We have particular experience with the small business market in eastern Pennsylvania, New Jersey and Delaware. We can provide advice on preparing a business for sale, even years in advance. We can help buyers find the right business for their circumstances. And we advise both sellers and buyers throughout the process to assure a quick, smooth transfer of ownership.
Do you own your own business?

The US economy is driven by entrepreneurs - small and mid-market businesses, more than 20 million of them, many of them privately owned. It is often difficult for owners to convert all their hard work and ingenuity into an equity event. It is a complex and time-consuming process. We understand the grind of running your own show and the uncertainty of getting the most value for the business. Stony Hill Advisors has the experience and expertise to assist with selling a private business successfully.
Are you looking for guidance?

We have experience in the small and mid-market business market with companies having revenues from $1M to $50M . We can provide advice on preparing a business for sale, even years in advance. We can help buyers find the right business for their circumstances. And we advise both sellers and buyers throughout the process to assure a quick, smooth transfer of ownership. In some instances, the parties to a transaction locate each other through informal industry or personal channels. These transactions include sales to unrelated third party acquirers, as well as management, family and partner buyouts. Stony Hill Advisors is frequently engaged to structure these transactions and navigate the many issues requiring attention from the initial stages to the consummation of the transaction. Often Stony Hill Advisors is engaged to provide Exit Value Planning to prepare a business for highest value when it is time to transition.

 
Are you interested in buying a business?

Stony Hill Advisors assists companies, entrepreneurs and corporate executives develop and execute customized acquisition strategies designed to result in successful acquisitions. We will find a unique business that is not necessarily “on the market”, resulting in a cost-effective acquisition.

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