Business owners seeking to maximize the value of their real estate when selling the business need to consult a commercial real estate expert as early on as possible, long before the deal is made to sell the business.

BARBERMURPHY Principal Collin Fischer urges business owners, if they also own the real estate, to include a properly structured lease as part of the overall business sale negotiation.

“Structuring a solid, longer term lease, say 7 to 10 years rather than 5 years, as part of the deal is in many cases a really sound strategy,” said Fischer. “If you own a building where the business is likely to stay on as your tenant after the sale, call us before you sit down and negotiate the deal with the buyer. Within a lot of mergers and acquisitions, real property is not the main focus. But in more situations than not, it could well be to the benefit of the seller and property owner to give this more attention.”

The trend of larger corporations merging with or acquiring smaller companies – and leasing the space from the seller – is one that is on the rise, according to Fischer. “Getting in front of the situation (aligning with the seller) and helping structure the lease for a strong investment sale is what we do,” he said. “If sellers can contact us sooner rather than later, long before the deal is negotiated, we can work with them to position their real property with a better investment value.”

Click here for full Article…

Article by Kerry Smith, Informationworks