Working With Landlords

Landlords play a very important role in the process of selling a business. If not dealt with properly, a landlord can cause a deal to fall apart that would have otherwise closed. If you are considering selling your business, it is important to review your lease and understand the terms that you agreed to. Most leases have a clause that allows you to assign the lease, but it is subject to the approval of the landlord which cannot be unreasonably withheld. Landlords understand that business sell and are usually prepared to deal with this event. Once you have decided to sell, you should consider approaching your landlord to find out what requirements they are going to have for a new owner. Landlords are usually looking for a minimum credit score, net worth, as well as the experience of the new owner in the industry. You can save a lot of time, money and energy by not dealing with potential buyers that do not meet the minimum requirements of the landlord. Remember, the landlord does not want vacant stores in their centers, so they are going to do what is best for their property when making a decision. Another important thing to know is that most landlords are going to require you to stay on the lease as a guarantor until the term you are assigning is completed. Therefore, you as the seller want to make sure you have a buyer that is strong enough to stay in business and pay the rent. Sometimes when there is only a short amount of time on the lease, the landlord may be willing to negotiate a new lease with the buyer where you will not have to stay on as a guarantor. It is important to discuss all options regarding the best way to deal with your landlord with your business broker, commercial broker or attorney. These professionals should have the experience necessary that can help get your deal done, protect you, and reduce your liability. If you are thinking about selling your business, and want more information about dealing with your landlord, don't hesitate to consult one of the professionals above.