You may be selling a company, a building or both. Tucson Business Brokers Office helps you begin a valuation inquiry that keeps those assets and your plans for them clear.
Identify what each entity owns
List the operating business and the property owner. They may be the same entity, different companies or an individual owner. Explain which interests you want to sell and which you may retain.
The operating business earns money from its activity. The building has its own income, costs and value considerations. Adding the two without checking the structure can count the same benefit twice.
Review the rent assumption
If the operating company pays unusually low rent to an owner entity, reported profit may not reflect the cost a buyer would face. Discuss an appropriate rent assumption with your valuation and property advisers.
If there is no written lease, prepare to address permitted use, repairs, renewal, assignment and other operating terms. A handshake arrangement can become a significant sale question.
- Sell the business and property together, if the deal supports it.
- Sell the business while retaining the building as landlord.
- Explore separate buyers or timing for the two assets.
- Keep the options open until advisers review the practical and tax effects.
A buyer for one asset may not buy both
The buyer may have the resources and interest to run the business but a different property plan. Decide whether you can consider a lease and what terms would work for both sides.
Retaining a property means retaining landlord responsibilities and exposure to the tenant. It is a continuing commitment, not simply an extra source of proceeds.
Prepare the two files together
Collect the business accounts and a separate property summary. Identify mortgages, occupancy arrangements and known capital needs. Ask the appropriate advisers to examine tax and financing effects.
Do not include property documents or personal financial information in this first form. A broad statement that property is owned or leased is enough to begin.
If you operate a shop, read sell a precision machining business. Prepare movable assets with prepare equipment records for a business valuation and check tucson business license changes when selling a business.
Request a business sale assessment and mention your property plans when the partner follows up.