Selling your business is a serious decision, one that requires careful preparation. If you lease your business space and are currently behind on your rent, you may worry whether you can sell your business at all. Here’s what you need to know to tackle this obstacle and still achieve your goal of selling your business.
How Much Do You Know About Your Business Lease?
Your business lease is much more than the amount of rent you pay to your landlord each month. Your lease has the potential to make or break the sale of your business. Since you don’t own the commercial building associated with your business, any effort to sell your business will require you to create a lease assignment, which transfers your association with your commercial lease over to the buyer. This allows the buyer to take over all obligations attached to your lease.
Approach Your Landlord If You’re Behind on Rent
Keeping up with bills can be challenging if your small business is struggling. For most businesses, rent is the largest monthly expense, which means it’s also the first to fall behind. Though laws vary by state and the terms of your lease, your landlord does have the ability to remove your business from its location and terminate your lease, giving you only a short amount of time to remove all assets from the property and vacate.
If you have a positive working relationship with your landlord, it might be possible to negotiate an agreement to catch up on your rent. An agreement could prevent notices that lead to the eviction process, thereby preserving your good standing as a tenant and making it possible for you to sell your business.
Work With a Business Broker
Any past due rent payments qualify as debt against your business, and any buyer will be concerned about the debt of the business being purchased. This is why it’s so important to work with a qualified business broker who understands the complexities of business sales and debts.
When you work with a business broker like Tampa Business Broker, a business sales expert will help you identify the best steps to take to resolve your past due rent and make your business look as appealing as possible to buyers. Call (813) 750-0275 to learn more about your business sales options. The team at TBB can make the difference between just getting rid of your business and selling it for the very best price and terms.