If you own a business as well as real estate, it may be tempting to simply put the business on the market and worry about valuing and selling the real estate later. The concern with this approach is that it may result in unforeseen problems. These problems can cause delays and unforeseen costs that lead to damage to the business.
To avoid any problems and ensure the successful sale of your business and/or real estate for the right price and terms, it’s important to apply a strong risk management approach. This involves conducting initial research to uncover any potential issues about the real estate such as property conditions, environmental issues, title checks, flood risk, crime overview, and more.
Factors to consider when selling a business with real estate
When selling a business in California, especially one that involves commercial property, there are many factors to consider. For instance, the sale of the business is typically kept confidential so employees, vendors, customers, and more don’t find out the business is for sale which can lower the value of the business. Additionally, many businesses in different industries require a special license or permit to operate, which can slow down the process of finding a qualified buyer.