Business owners thinking about selling their company have a great deal to consider. Owners that also own the property they operate their business out of have even more to consider. Deciding whether you will sell or keep your commercial property calls for careful planning and thorough documentation. It is possible to sell a business and the property simultaneously, but choosing to do this depends on what you hope to gain from the transaction.
Table of Contents
- Selling Commercial Real Estate
- Selling a Business
- Can a Real Estate Agent Sell a Business?
- What to Do When the Sale of Your Business and Real Estate Are Together
- What to Do When You Want to Sell Your Business and Keep the Building to Lease
- What Is the Best Way to Sell Commercial Real Estate When Selling a Business?
- Sell Your Commercial Property Near Kansas City
Selling Commercial Real Estate
The first step is to find a real estate agent who is trained to sell or lease a commercial property. Partnering with an experienced company in your location will help you come up with an accurate valuation as professionals take a closer look at property records, financial statements, comparative property analyses, and other details that apply solely to your real estate.
Selling your commercial real estate leaves room for you to explore different opportunities based on how much you get from the transaction. If your commercial real estate is in high demand, you could end up with a sum of money to use for relocation, branding, product development or expanding on what your business has to offer. Determine the goals you have for your business, as selling your property for a competitive price can help you avoid taking out a business loan for future endeavors.
There are multiple contributing factors that you need to be aware of before setting your personal expectations for the sale of your commercial property. The market value of your property will be dependent on the complexity of your local market, the size and age of the structure, among many more factors
Selling a Business
The process for selling a business can be more complex than that of selling a commercial property. The reason for the sale can influence timelines and the level of buyer interest. For example, a profitable business may be more desirable to buyers than a company experiencing financial troubles. Every business is unique, and the sales process can last anywhere from months to years.
A business owner should present tangible and intangible assets included with the sale, tax return documents from the last three to five years and income projections to determine a reasonable valuation with financial advisors. How a business is performing in relation to similar-sized organizations within the same industry will also come into play.
When selling a business, a series of contractual agreements are put in place anytime an individual wants to transfer ownership from one person to another. It takes an experienced broker to organize the specific documentation necessary for your business.
Can a Real Estate Agent Sell a Business?
Successfully selling a business can require hiring a professional who understands your goals, has applicable experience, as well as a successful track record. Real estate agents specialize in the selling of commercial buildings, not companies. Working with a business broker to sell your company and a real estate agent for your property sets you up for a maximum return on investment.
What to Do When You Sell Your Business and Real Estate Are Together
It is best to plan ahead if both your business and property will sell at the same time. The location along with the condition of your property will influence how much a potential buyer is willing to spend. Therefore, take the time to hire a contractor for any repairs that will boost the value of your building. Business owners should speak to a real estate agent to understand what improvements should be made to their property.
If the buyer of your business does not want to own the building, you will need to investigate alternative buyers. Selling commercial property can save you from taking on the responsibilities of being a landlord. Under this circumstance, the new owner(s) of your business will pay rent to the new owner of your property. The two parties enter an agreement together while you stay out of the equation.
What to Do When You Want to Sell Your Business and Keep the Building to Lease
Business owners may want to sell their business but maintain ownership of the commercial building. This might be done to generate a source of income or allow the real estate to appreciate in value before selling later on.
Hire a professional leasing agent to outline a legal agreement you and the opposite party understand. Aspects of the lease must outline which party is responsible for certain expenses and repairs. The professional leasing company you work with can outline the length of the lease, the cost of monthly payments and other terms that allow you to sell the building at a later date if you desire.
What Is the Best Way to Sell Commercial Real Estate When Selling a Business?
Potential buyers can only make a purchase when they know a commercial property is available. There is no one-size-fits-all approach when selling real estate alongside a business, but having brokers on your side will streamline the following:
- Determining true market value
- Marketing your listing through print and online channels
- Building interest from investors outside the local community
- Communicating with leads
- Transaction, paperwork management & compliance
- Organizing the sale of your commercial property traditionally or via auction
Sell Your Commercial Property Near Kansas City
Cates Auction & Realty Company assists with selling commercial properties in Kansas City and the surrounding area. Using our propriety marketing platform to enable competitive online bidding, we are able to uncover qualified buyers for the properties we auction in as little as 30 days. Create a competitive bidding environment for your business or real estate by contacting us online for more information about our services.