Problems? How Business Buyers Can Spot Issues

 

If you are looking at businesses to buy, then the first things you will encounter that will tell you about the business are the financial records – likely a P&L and/or tax returns.

 

While financial records can tell you a great deal about the stability and health of a business – there are some other less obvious ways to determine how a business is really doing.

 

 

Watch The Owner

Some owners mentally check out the moment they list their business, some mentally checked out long ago. Owners who are consistently late to meetings, consistently sluggish on answering questions or constantly procrastinating with requested information are probably that way in the day to day operations of their business. A business with an owner who habitually doesn’t stay on top of things probably isn’t in the best shape.

 

How does the owner treat you when you visit? If they are condescending or rude to a potential buyer – someone who may write them an enormous check in the near future, then they are probably even worse to their employees, vendors and customers.

 

 

Read Reviews

You might need to take these with a grain of salt, especially if it is a business with only a handful of reviews. The internet creates a veil of anonymity that some use to blast businesses for almost no slight at all. Some people just love to complain.

 

What reviews should you take seriously? If a business has 300 reviews and 80% are horrible, then there is definitely an issue. If there are only a few reviews that seem to be written by chronic complainers – but they all follow the same vein, like terrible customer service from wait staff, then that can give you a pretty good idea of what you’ll need to change the moment you get the keys.

 

 

Watch For A Mess

When you tour a business, you can find out very quickly if the current owner is someone who excels at attention to detail. A business that is filthy or has equipment in various stages of disrepair is probably lacking ownership attention in other non-physical areas of the business as well.

 

When you are in the market to buy a business, don’t just rely on the financial numbers when deciding whether to purchase or how much to offer. You can use other indicators, like owner behavior or the state of equipment, to determine if the business is right for the price and for the goals you are hoping to achieve.

 

If you are looking for a business that is more of a fixer-upper – then bad reviews, poor cleanliness and a disconnected owner might be good signs that you will be able to negotiate for a price that leaves you the capital you’ll need to turn it around. If you are looking for more of a turn-key business, then you’ll want to find the non-financial aspects of the business in good shape.

 

 

 

Do you have questions about other non-financial clues you should be watching for when considering businesses to buy? Do you have one that we didn’t mention that you’d like to share? Please leave your questions and comments – we would be happy to help!

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
5111 Ocean Boulevard, Suite E
Siesta Key, FL 34242

www.InfinityBusinessBrokers.com

 

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Why You Absolutely CAN Own Your Own Buisness

When we chat with people and they find out what we do, the conversation usually goes something like this,

 

I would love to own my own business, but…(insert excuse here)

 

Sure, there are a myriad of reasons why going it alone and owning your own business may seem like a foolhardy venture, but the truth is entrepreneurship can be the key to happiness.

 

Why? When you own your own business, you are the boss of your day to day life. The amount of money you make, what you do for work – these things are now up to you. Talk to any entrepreneur and they will tell you that this kind of control over your own destiny is absolutely worth it.

 

Let’s look at some of the big excuses we hear about why buying a business is impossible and show you that all it really takes to be your own boss is a little planning and a lot of drive.

 

“I don’t have the money.”

 

Sure, there are a lot of businesses out there that only a multi-millionaire could afford, but the truth is the small business market is full of businesses that many people could absolutely afford to buy. Smaller ventures can be bought outright for cash from your savings, while some medium sized businesses can be purchased with a decent down payment and a bit of seller financing. Think of the money you would need to buy a business this way – you aren’t just spending the money – you are investing it in a business that will give you a return on that investment with some hard work on your part. You already go to a job and work hard for someone else, why not do that for yourself?

 

“It’s too risky.”

 

Yes, all business ventures come with their fair share of risk, but so does the job you have now. You could walk into work tomorrow and get fired. If you own your own business, any mistakes you make, any risks you take that don’t pan out will make you a better and smarter entrepreneur in the long run. Think ahead to your retirement. Are you going to look back at your working life, where you gave your blood, sweat and tears to someone else’s business, and wish you had taken the chance to work for yourself?

 

“I don’t know how to run a business.”

 

You’re right, none of us did at the beginning – but you learn fast. Think back about every boss you’ve ever had. How many times have you said to yourself “My boss is an idiot, if I were in charge I would…”. See, you do know some of what it takes to own your own business! The rest you can learn along the way. Talk to other business owners, read books, take a class – the know-how is out there if you are willing to find it. It is also a good idea to buy a business in an industry where you’ve already worked. That practical experience will serve you well.

 

The message here is if you’ve always wanted to own your own business, there is no such thing as an obstacle (or excuse) that you can’t overcome with some hard work and perseverance. Take the entrepreneurial leap, and you can soon be well on your way to business ownership.

 

Are you thinking about buying a business, but you’re not sure you have enough funds? Are you curious about what would be available? Ask us! Please feel free to leave us a comment or question here, and we would be happy to help you on your journey to entrepreneurship.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
5111 Ocean Boulevard, Suite E
Siesta Key, FL 34242

www.InfinityBusinessBrokers.com

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The Long Wait – When Sellers Drag Their Feet

As business brokers this has to be one of the most frustrating aspects of the job.

 

You have a motivated buyer who is very interested in a particular business and a decent offer is on the table. You request that the seller send over the information required for due diligence, like financial records, tax returns, etc.

 

Then you wait. And you wait.

 

 

Then the seller sends over partial records, which you forward to your buyers, but the rest of the information your buyers requested has yet to be produced. So you wait.

 

You get constant calls and emails from your buyers, and all you can tell them is you haven’t received the information from the seller so your hands are tied. The inevitable conclusion of this situation is the deal will fall apart and the buyer will move on.

 

Why does this happen?

 

Some sellers go on the market with the initial intention of selling, but once they are in the process, they realize

  1. that it can require a lot of work on their part to produce information and be available for questions/meetings, and
  2. they are shortly going to be out of a job

 

This can cause some sellers to develop a decent case of cold feet. It can also cause a seller to be defensive, as constant requests for more financial information can give the impression that the buyer is trying to dig up dirt on the business.

 

This, of course, is not the case. Buying a business is a huge decision, and most buyers are going to want a thorough look at any business before they pull the trigger.

 

What if the problem isn’t the seller? Could the problem be the broker?

 

If your broker is really good about answering your questions, is prompt with returning phone calls and emails and has been forthcoming about the issues they may be having with the other sidethen their hands are probably are tied. If it takes your broker ten days to return your phone calls, then yes, the problem is likely the broker.

 

As with everything in a business transaction, a good dose of patience will go a long way. This does not mean, however, that you have to sit around and wait for a seller to deliver information they have no intention of ever giving you. Talk to your broker if you have concerns about time frame issues, and understand that sometimes there really isn’t anything a broker can do to speed up the process.

 

Are you a buyer who is having a hard time getting information out of sellers? Do you have questions about whether the issue may be with your current broker and not with the seller? Please feel free to leave us a comment or question here, and we will be happy to assist you.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
5111 Ocean Boulevard, Suite E
Siesta Key, FL 34242

www.InfinityBusinessBrokers.com

 

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Why There’s No Such Thing As The Perfect Time To Buy A Business

 

2020 was a strange year. A pandemic, a contentious election, protests and the like. If you were contemplating the leap to business ownership, are recent events causing you reconsider your jump?

 

Should you wait until things settle down to buy a business?

 

Nope. Here’s why.

 

There is no such thing as the perfect time to buy a business.

 

Sure, small business ownership can be impacted by changes in the overall economy and many small businesses struggled or didn’t survive the shut downs brought about by the pandemic. Here’s what’s also true. Some businesses have been weathering the storm well. Some have thrived. Why?

 

You can’t let what’s happening in the news dictate your entrepreneurial success.

 

The news has always been scary, but this last year it was on a whole new level. If you watch any news at all it might look like the whole world is on fire and every small business tanked. It isn’t, and they didn’t either.

 

In reality there are always going to be issues when you own a small business. Things that are completely out of your control. The wider economy. Global health crisis. Weather events. Political strife. Here’s what separates successful entrepreneurs from the pack. They don’t let the outside world determine their destiny.

 

They are willing to rethink every aspect of their business when things change. They aren’t afraid to do things differently when necessary. They pivot quickly and creatively when the needs of their customer base change. When something they’ve tried doesn’t work, they dust themselves off and move on. They focus on growth, always.

 

What successful entrepreneurs don’t do is wallow in news-driven fear. They take the information they gain from what’s happening around them and use that information to move their business in the right direction.

 

The message here is if you’re waiting for the perfect time to buy a business – don’t.  It will absolutely keep you from your entrepreneurial dreams forever.

 

A few examples?

 

If you’re waiting for the economy to return to full strength, remember that in a booming economy businesses are far more expensive than they are when it’s not. If you wait, you might price yourself out of the game. If you’re waiting for the pandemic to be over, remember that it might take a really long time for life to return to some semblance of normal – and many things are likely permanently changed. The business owners who will do well in our post-pandemic world will be the ones who were creative enough to survive today. Waiting means you will be missing out on that boots-on-the-ground practical knowledge that will help you be successful down the line. Be a part of that tough bunch now instead of having to compete with them later. If you are waiting for political changes, remember that people have been building successful businesses throughout history – and it never really mattered who was in charge. You are responsible for what happens in your business, not a politician on the other side of the country.

 

Don’t wait. Fulfill your dreams of business ownership now.

 

Were you considering buying a business but aren’t so sure anymore? Do you have questions about what types of businesses are doing well right now? Would you like to know more about what types of businesses would meet your business ownership goals? Ask us! Please leave any questions or comments and we would be happy to help.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
5111 Ocean Boulevard, Suite E
Siesta Key, FL 34242

www.InfinityBusinessBrokers.com

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Want Happiness In 2021? The Entrepreneurial New Year’s Resolution

2020 was a rough year, for everyone. This New Year’s holiday holds special meaning for many of us. It’s a chance to start again.

 

That’s right, it’s New Year’s resolution time.

 

 

We all do it. We come up with fabulous and complicated New Year’s resolutions and then fail miserably within the first three weeks of the new year. We all want to be thinner, in better shape, more organized.

 

If you consider them as a whole, what are all of our collective New Year’s resolutions really about? They’re about happiness. If you are thinner, then perhaps you’ll be happier. If you’re in better shape or if you’re more organized, then perhaps you’ll be happier.

 

The reason these resolutions fail is they only scratch the surface of the underlying goal you are trying to achieve. Losing 20 pounds might initially make you happy, but you still have to get up and go to the job you hate every day.

 

Happiness is less about superficial changes and is more about living with a sense of purpose. It comes when you feel fulfilled in your daily life.  How do you reach fulfillment?

 

Take control of your career and follow your passion by becoming your own boss.

 

It may seem like a daunting proposition to become your own boss, but taking the entrepreneurial plunge doesn’t mean you have to come up with a genius idea and build a business from the ground up. You can enter the world of small business ownership by simply buying a business that already exists.

 

The benefits of taking this route to business ownership are easy to see. Buying an existing business means you don’t have to contend with coming up with a concept, finding and then equipping a location, finding and training a new staff, establishing a customer base, obtaining initial licenses and permits – the list goes on and on. All of this “start-up” work has already been done, and you even have the previous owner to train you when you take over so you aren’t walking in cold.

 

If you are thinking that buying a business might be a great part of your 2021 plans, you probably have some questions:

 

How much money does it take to buy a business?

The answer is, it depends. Sure, there are multi-million dollar businesses on the market – but there are also many smaller businesses that would require a much smaller initial investment. Many business sellers also offer the option of seller financing, so you may be able to get a business that would suit your goals without having to pay all cash.

 

What kinds of businesses would be right for me?

Remember that the point of business ownership is to have control over your own destiny and to feel fulfilled in your daily life. You shouldn’t buy a business where you aren’t going to be happy – without drive and passion you will most likely run the business into the ground. You also shouldn’t buy a business you know nothing about. Giving yourself the massive hurdle of trying to learn a whole new industry on top of learning how to run your new business just means you are setting yourself up for failure.

 

Think about what your goals for business ownership are. Do you want a more flexible schedule? Do you have a particular passion that you want to turn into a career? Are you looking to make a long term commitment to a business or are you looking to grow and then sell your new business for a profit? These types of questions will help you decide what types of businesses would be right for you.

 

What’s the next step?

Contact a business broker. They can help you figure out what businesses would be right for you based on your goals for business ownership and the capital you have available.

 

Get yourself on the path to business ownership and happiness in 2021!

 

Do you have more questions about the process to buy a business? Would you like to know what businesses are currently available? Ask us! Please feel free to leave any questions or comments here and we would be happy to help.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
5111 Ocean Boulevard, Suite E
Siesta Key, FL 34242

www.InfinityBusinessBrokers.com

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Dig Deep: Decisions For Business Buyers

If entrepreneurship is your goal, there are more decisions to make than just picking a business off a list of listings. Figuring out the RIGHT business to buy is crucial to success. Here’s how you do it:

 

 

Dig deep.

 

What do we mean by that?

 

You need to figure out what you want. When you buy a business, you are buying yourself a life-encompassing job – a job where the buck stops with you. What do you want your future life to look like? Figuring out what really means the most to you, as well as what tools you have to help yourself be successful can mean the difference between buying yourself a successful new business and buying yourself a nightmare.

 

What factors should you consider?

 

Your background.

Why is your background so important? Owning and operating your own business is tough. It can sometimes mean long hours, tough decisions and navigating lots of issues. Your background matters because the steep learning curve that happens whenever someone buys a new business will become impossibly steep if you add learning an entirely new industry to the mix. Don’t do that to yourself. Pick a business that compliments the practical experience you already have. If you’ve spent the last 15 years in the manufacturing industry, and have never worked a single day of your life in the restaurant industry – buying a huge bar on the beach isn’t going to end well. Talk to your business broker about your experience and strengths – they can help you find business choices that will compliment your background and set you up for success.

 

Where you want to live vs. what type of business is actually possible in that area.

It should go without saying that some types of businesses can only be successful in certain areas. For instance, service-type industries (think restaurants, landscaping, housekeeping) do really well in places like southwest Florida where people are coming to second homes for vacation – and probably don’t want to be doing a ton of housework or cooking while they’re here. The same type of service business probably isn’t going to be as successful in a very rural part of Montana, for example. Take a look at the area where you’d like to live. What works there? What doesn’t? Talk to your broker about what businesses do better – and worse – in the area you’d like to end up.

 

What is your ultimate goal for business ownership?

Are you looking for a goal of making a certain amount of money in the next 5 years? Are you looking for a challenge and are willing to push the envelope with a business that will require more work on your part for a potentially bigger return? Or would you prefer a nice, safe and steady shop without a ton of room for growth – where you won’t have to push as hard but returns won’t be as big either? Your ultimate goal for business ownership will obviously have a big impact on your search. Talk to your broker about your income goals as well as about how much of a challenge you are willing to take on. 

 

Can you realistically get the licenses required?

Red tape can be very strange. There are certain industries in certain states that require a business owner to have prerequisite requirements for an operating license that might be hard to get. Think requirements to have x amount of years doing a specific type of work before you can even apply for a license. Some licenses require background checks, fingerprinting and the like. Ask your business broker about the industries you are interested in. The licensing requirements for an industry might preclude you from owning the business you think you want, so figuring out licensing limitations will be important early on in your search.  

 

The message here is buying yourself a new life needs more than a cursory search through listings. You need to dig deep and decide what you want your life to look like, then have a discussion with your broker about what type of businesses will fit with those goals.

 

Are you considering buying a particular type of business and have questions about whether or not it will meet your goals? Do you have questions about licensing requirements? Would you like to know more about the business search process? Ask us! Leave questions or comments and we would be happy to help.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
5111 Ocean Boulevard, Suite E
Siesta Key, FL 34242

www.InfinityBusinessBrokers.com

1 Comment »




Do You Have Enough Capital? The Big Question For Buyers

When the dream is owning your own business, you have a lot of questions.

 

A big one is “how much money do I need to buy a business?

 

There’s an issue with this question. The issue is the answer – it depends.

 

 

It depends on what type of business would be right for you. 

Many new business owners walk into the business market under the mistaken assumption that anyone can own and run any type of business. Nothing could ever be farther from the truth. To keep your new business profitable, you will need to be able to both navigate and compete in the market you are in. If you have little to no relevant experience in your business, there is likely no way for you to stay competitive. To avoid this pitfall you should look for businesses in industries where you have practical experience. By staying with what you know you will avoid the potentially catastrophic learning curve that comes with learning a new business and a new industry at the same time. 

Every industry is going to have options in terms of price. There will be some larger, well-established – and thus highly priced businesses as wells as smaller, more affordable businesses with room for growth. Focus first on the type of business, then look at price.

 

It depends on how much capital you have available, and how you allocate that capital.

Do you have enough money ready and available to buy and run a business? You should really have at least 50% of a purchase price if a seller is offering seller financing, and all cash or third-party financing already in place if seller financing is off the table. You need to allow for not only the purchase price, but all of the other costs involved in a business sale – like fees for licensing and money available to keep the business running until you are able to start turning a profit at the helm.

Be honest with your business broker about how much capital you have available for your new venture and then listen to their advice about what you can reasonably afford.

 

It depends on what your goal for business ownership is.

Are you looking to invest almost all of your capital in order to buy a well-established, highly profitable business – or are you looking to hang onto more of your funds and buy a business that has lots of room for growth? You will likely have to work a bit harder in the second scenario, but you will have the benefit of having enough funds to ride out any issues that you come across.

You will have to decide what you want your day to day life to look like, and discuss those desires with you business broker.

 

The message here is there’s more to look at than just the price of a business. You need to figure out your goals, look for industries where you can be successful and then decide how you’d like to allocate the money you have available.

 

Are you thinking about buying a business? Do you have questions about seller financing and the best type of business for you? Ask us! Leave us a comment or question here, and we will be happy to help you on your business ownership journey.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
5111 Ocean Boulevard, Suite E
Siesta Key, FL 34242

www.InfinityBusinessBrokers.com

 

 

 

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Metrics Of Health – Why Buyers Should Consider More Than Price

If you are a prospective entrepreneur looking to buy your own business, you may have already noticed the unique nature of business listing prices – they seem to be all over the place.

 

How do you as a buyer interpret the listing price of a business as it relates to its fiscal health?

 

Listing prices are typically based on the cash flow the business generates, but there are other aspects that will speak to the overall health of a business which buyers should pay attention to. Here’s a few to consider:

 

 

Consistent Numbers

If a business has very consistent numbers, it might mean less risk for a buyer. Remember that the value of a business to you is the earnings it will have in the future. Consistency year over year is what you are looking for. Many businesses will have seasonal fluctuations that have everything to do with the local economy and seasonal shifts and nothing to do with the health of the business. If you are seeing large annual fluctuations, ask your business broker if those fluctuations are merely seasonal or something more problematic.

 

Operating Profits

In order for you to pay yourself and pay back any debt you incurred with the purchase of the business the business will need to be generating operating profits. A business with numbers that consistently show operating profits will be a better bet than a business that is only breaking even. A caveat here – a business that isn’t doing so well but has easily remedied issues (like staffing changes, adding a marketing plan where none exists, etc.) might be a good deal if you can get it for a great price. 

 

Diverse Customer Base

In a business that has a diverse customer base the loss of a single customer will not be as catastrophic as it would be for a business with only a small handful of clients. Look for both a large number of clients and clients across a diverse spectrum. 

 

Reputation and Brand

A business with a great reputation or a very well established brand will have a more loyal clientele, meaning less work for you as the new owner. Instead of having to spend your time rebuilding a poor reputation you will be able to focus your marketing time on acquiring new customers.

 

Good Managers

If a business is well managed by the staff without the owner having to be present 100% of the time – and if those managers/staff are willing to stay on if the business changes hands, it can be a good sign for a potential buyer. It will mean less disruption when the business changes hands and less of a learning curve for you as a new owner because there will be staff present to help with many aspects of day-to-day operations.

 

If you need help determining if the listing price of a business really reflects reality, talk to your business broker. They know the current market, what recent comparable businesses have actually sold for and what aspects of a business can bring the most to a new owner.

 

Are you a future business buyer who has questions about the value of businesses you have seen for sale? Have you come across businesses that seem over or under priced? Leave us a comment or question and we will be happy to assist you with your business search.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
5111 Ocean Boulevard, Suite E
Siesta Key, FL 34242

www.InfinityBusinessBrokers.com

 

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Future Entrepreneur? A Few Thoughts

 

We would all love to be our own boss, to be completely in charge of our own destiny. If entrepreneurship seems somehow out of reach, you should know there are easier paths to business ownership than coming up with a groundbreaking and inspired idea and building a successful and thriving business from the ground up. What follows are a few thoughts for the entrepreneur inside of you – waiting to succeed. 

 

You can skip the build-out and buy existing.

 

The inspired idea would be nice, but it’s not necessary – or the easiest path. Typically, buying a business is a safer bet than building one from scratch. You get to take over as owner of an already built-out location with trained employees and a proven set of operating procedures. This can be a fantastic first step into business ownership because it skips all the disadvantages a start-up will encounter, like establishing a customer base and building cash flow.

 

It is not, however, a fool-proof way to enter the world of business ownership. You need to choose a business that is profitable, or one that has easily-remedied issues that will make it profitable quickly (like customer service issues that could be handled by replacing some of the staff). You need to choose a business that has room for growth, and if it is a retail business, one with inventory that customers still want.

 

Look for something in your wheelhouse.

 

When you are beginning your foray into business ownership a big step is choosing the type of business you will buy. Be very careful with this step because it is where many new entrepreneurs get into hot water. DO NOT buy a business you know absolutely nothing about. If you are someone who has enjoyed the bar-scene for a long time, but you have never spent so much as a minute working in the bar/restaurant industry, then buying a bar is a terrible idea.

 

Look at industries where you have some knowledge or experience, as this familiarity will save you from complete disaster. Taking over a business for the first time is hard enough – you don’t want to add starting from scratch in a brand new industry to the equation.

 

Find the right help.

 

The smartest step any budding entrepreneur can make is to talk to an experienced business broker. That first conversation can tell you what your options are, help you figure out your next steps and get you launched on the path to business ownership. A broker will be an invaluable asset. They can help you find businesses that are right for you, be a buffer during the negotiations between you and the seller, assist you with licenses/permits, help you put together contracts – the list goes on and on.

 

The message here is if entrepreneurship is your goal, there’s really no reason you can’t start planning a way to reach that goal. Talk to a business broker today!

 

Are looking for help with finding the right business for you? Do you have questions about the business buying process? Ask us! Please feel free to leave us a comment or question, and we will be happy to help you on your journey to business ownership.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
5111 Ocean Boulevard, Suite E
Siesta Key, FL 34242

www.InfinityBusinessBrokers.com

 

 

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Buying A Business? Commercial Lease 101

You’ve found a great business and are excited to start negotiations with the sellers – but here’s a thought you may not have considered. That’s not the only negotiating you’re going to have to do.

 

When you buy an existing business, you typically are not buying the physical space that the business occupies.

 

Most businesses come with a lease, and that lease comes with a landlord and/or property manager.

 

 

Most landlords accommodate transfers easily, but not all do. Deals can get hung up on the lease when the landlord refuses to grant the transfer or has decided to change the lease terms dramatically. They can also get hung up if you don’t start working on the transfer until the last minute. 

 

The most important thing you can do as a buyer is get your hands on a copy of the current lease as soon as possible, and then deal with any lease issues long before the day you are supposed to close your deal.

 

Once you have the lease, the language you would typically want to see is in the section of the lease that has to do with transfers or assignments of the lease. Does it say something along the lines of “any assignment will not be unreasonably withheld”? If it does, you are probably in good shape. This type of language means the landlord would have to come up with a very good reason to keep from transferring the lease to you.

 

Landlords, for the most part, are concerned with keeping a rental space filled and generating rental income. Some, however, are unwilling to reassign leases (at least initially).

 

This is a part of the business sale process where your business broker will be an invaluable asset. They can act as a buffer between you and a difficult landlord, and can help to negotiate your new lease or the reassignment of the old lease to keep the lease rates reasonable.

 

Another way to keep the lease from holding up your closing is to be forthcoming with your financial information when the landlord asks for it. Most landlords are going to want to see some kind of financial statement that proves you have the capital to keep the business open. It would be foolish for them to rent to a tenant who will be forced to close the business doors only a third of the way through the lease. Some landlords also want to see some kind of resume or work history to show you have the experience necessary to keep the business running and profitable.

 

You should also be aware that in some cases the rental rate will slightly increase from what the seller is currently paying when you get a new lease. You can negotiate a lease extension at the same rate, but eventually your new lease may come with a new rental rate. You will also be responsible for coming up with the deposits necessary for the lease.

 

The message here is your business won’t be much of a business if you can’t get a lease assigned to you for the space. Deal with lease issues early on and the won’t become a big headache in the end.

 

Are you a business buyer who has questions about business leases? Have you had a deal fall apart because of a difficult landlord? Please feel free to leave us a comment or question here, and we will be happy to assist you with any lease questions.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
5111 Ocean Boulevard, Suite E
Siesta Key, FL 34242

www.InfinityBusinessBrokers.com

No Comments »




Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

9040 Town Center Parkway
Lakewood Ranch, FL 34202




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