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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