Selling Your Business and Property

We are going to concentrate on businesses with property to sell because this type of business will differ from selling your business with no property. A majority of the businesses sold in the United Kingdom will not have property to sell, especially the small to mid- sized businesses. Smaller companies usually cannot afford to own the space they are in. This is why leases are used for the businesses and why we need to talk about a business with property sale.

Businesses with property can garner a higher price or a different structure to the sale agreement. We will look at selling the business with the property first. When you assess how much the business is worth to you, you can determine the value of the property. You should however, determine the two values separately and together.

First you need to know what the property would actually cost if it did not have a business in it. This value will help you determine what you would like to get for it. The business can be sold without the property, so it is always a good idea to have a value for what you would like for the business separate as well. For example if a person approaches you and states they want the business, the business system, and its inventory, but they want to house it in a building in the next town you could sell the business without the property.

The price you determine for the business with the property should reflect the value of both. However, you could look at it like a package deal. For example the ad could say the business is 10,000 pounds and the property is 200,000 pounds, and the combined package could be a little less of both the property and business together. This way the buyer can see how buying the package deal is a good option as opposed to buying the land later.

Our last option for selling a business with property is leasing the property. For instance, say the buyer does not have the entire sale price handy. They can purchase the business outright, but the property makes it a little too much to handle. You can set up a lease deal in which all or part of the payment each month goes to the price of the property. Eventually the buyer would have to pay a lump sum or you would continue to lease it until the amount is paid off by the buyer.

The sale agreement you create will need to reflect the way you and the buyer have agreed to. It should be explicit in terms of when the full payment is due and what terms they have during the payoff period. Property will certainly add to your ability to sell the business.