It is possible to sell a commercial property and an operating business together in Michigan. However, it is not always advisable. It can be a tricky process that has numerous pitfalls.
Business brokers are ideal for the valuation of a business
If you’ve been operating your business for a while, there likely are some profits and losses involved. Some real estate professionals aren’t aware of how to assess the cash flow of a company and determine the business’ value. This type of work is best left up to a business broker. They will look at the income, expenses, what expenses would revert to the new owner, and other considerations to determine the value.
Contracts differ for businesses
The contractual agreements for business transfers are different from those that involve real property sales. In large part, this is because a business has customer/client base demographics and guarantees of volume. These elements must be included in a contract for a business transfer.
Improve the curb appeal
Beyond the question of whether or not you plan to sell your business and commercial real property together, you can think about how to boost its curb appeal. This only will work if you have enough time before you plan to sell the property. Put thought into the building structure, landscaping and any remodeling that should be done in order to increase the value. It may also help your business bottom line in those last few months before you sell it.
Overall, selling your operating business and commercial real estate simultaneously can be great. Put careful thought into this process and how you should go about it, including what professionals can assist you.