Sell Commercial Property With Operating Business In California

You Are Now Ready To Sell Your Business With Commercial Property

Selling Your Biz with Your Bricks? Watch Out for These Bumps!

So, you're ready to cash out on your thriving business and its sweet commercial property? Hold on, partner! Selling both together might seem like a breeze, but there can be some hidden potholes in the road.

Don't worry, we've got your back with the key bumps to avoid:

Secret Squirrel Sale:

Imagine shouting "Selling my business!" from the rooftops. Customers flee, employees jump ship, and vendors ghost you faster than a tumbleweed in a Western. Yikes! That's why California keeps business sales under wraps. No blabbing allowed! This secrecy keeps your business humming and its value high while you navigate the sale.

License Limbo:

California loves its licenses, and some businesses need special ones to operate. Finding a buyer who fits your business and its permits can feel like searching for a unicorn – rare and takes time. So, be patient and prepared for some extra digging to find the perfect match.

Loan Sharknado:

Forget lemonade stands, businesses gotta deal with SBA loans or other complex financing process. This adds another layer to the selling frenzy, so buckle up for some paperwork and patience.

Commercial Property Detective Game:

Before you slap a "For Sale" sign on your property, channel your inner Sherlock Holmes! Check for hidden cracks, environmental gremlins, flood risks, and even neighborhood drama. Having all the dirt upfront makes the sale smoother and helps you fetch the top dollar.

Rent Roulette:

Is your rent super low? Don't expect the buyer to be your charity case. Be realistic about market rent and who's gonna foot the bill for property taxes, insurance, and upkeep after the sale.

Title Twister and Flood Friend:

Imagine selling your car only to find out it's actually a spaceship! Don't let that happen with your property. Get a proper land title survey and check if the property is chilling in a flood zone. These things can sink a sale faster than a leaky boat.

Escrow Escapade:

Think of escrow as your trusty guide through the selling maze. They'll hold onto your hard-earned cash and make sure everything is crossed off the checklist before you hand over the keys.

Remember, selling your business with your commercial property in California is like a rollercoaster – exciting, but with twists and turns. By keeping these points in mind, you can navigate the ride smoothly and land a sweet deal for both your business and your bricks!

Bonus Tip: Check out those free reports we mentioned. They're like X-ray glasses for your property, helping you spot any hidden nasties before they cause trouble.

Good luck!

Marketing The M&A Deal

Getting Ready

This step includes taking the necessary preparations to allow the M&A process to run smoothly.

• Prepare non-disclosure agreements
• Create a confidential information memorandum (CIM)
• Organize finances
• Create projections of income to show potential buyers

Round 1

4-6 weeks.

The first round is where the M&A process begins in earnest. Several steps should be accomplished during this time.

• Non-disclosure agreements exchanged
• CIM distributed to potential buyers
• Receive initial bids

It’s vital to note that while initial bids are non-binding, they can gauge a potential buyer’s interest.

Round 2

4-6 weeks.

Round 2 is when the seller will meet with interested buyers. Several things should occur during this time.

• Hold meetings with interested buyers
• Draft a definitive agreement
• Prepare a data room to facilitate due diligence
• Receive final bids from the buyers

Negotiations

4-6 weeks.

Negotiation is the final portion of the M&A process and the last step in selling a company. During this time, there are things to be finalized. 

• Send the definitive agreement to buyers
• Enter an exclusivity agreement with a single buyer
• Present the buyer's terms to the board
• Receive board approval
• Sign the definitive agreement

Once the definitive agreement is signed, the M&A process is complete. 

Digging Deeper: Beyond the Basics of Selling Your Business with Commercial Property

Selling a California lower middle market business with its commercial property can be a complex dance. While we covered the big moves in the above section, let's peek behind the curtain at some additional factors to consider:

Keeping Your Bricks & Mortar:

Not every California business owner in the lower middle market wants to say goodbye to their property. Some prefer to keep it and offer a lease to the buyer. This can be a win-win, especially if the property is crucial to the business operation (think gas stations and car washes!). But before you waltz down this path, ponder:

• Is it glued to the business? Can you easily separate them, or are they like peanut butter and jelly?
• Building Blues? Is your property a shining star or a fixer-upper? Are you ready to handle repairs or willing to pass the baton with a fresh coat of paint?
• Lease Length Limbo: What if your tenant takes an early exit? Can you find a new dance partner quickly, or will you be left with empty steps? Remember, SBA loans often require 10-year leases, so think long-term!

See a full list of selling a business questions by business owners that we've already answered with deeper details.

Go Here!

Rent:

Is your current rent a sweet melody or a discordant note? Be realistic about market rates and who'll pick up the tab for property taxes, insurance, and maintenance after the sale. Remember, low rent can lower the business value like a flat note in a symphony.

Environmental Encores:

Any environmental gremlins lurking around your property? These can throw a wrench in the whole performance, impacting both the business and real estate value.

Zoning Zoning, Who's Got the Zoning?

Before putting up the "For Sale" sign, ensure your property is in tune with local zoning ordinances. Think of it as checking the stage for hidden props that could delay or even sabotage the closing.

Flood Zone Foxtrot:

Is your property a potential flood victim? Knowing this early helps avoid a watery waltz when it comes to finding buyers.

Bonus Tip: Check those free reports we mentioned! They're your backstage crew, uncovering any hidden issues before the curtain rises on a smooth and successful sale.

• Sample report of California Commercial Real Estate property of the environment with regulatory summary and neighborhood.
• Sample report of California Commercial Real Estate with property condition report, site summary, building summary, hazard risks, and more.
• Sample report of California Commercial Real Estate flood certificate.

Remember, selling your business and commercial property is a journey, not a quick tango. By considering these additional factors, you'll be well-equipped to navigate the complexities and land a deal that's music to your ears!

M&A LOWER MIDDLE MARKET ADVISORY

Why Work With Rogerson Business Services?

What People Say About Rogerson Business Services