One of the most consequential decisions in structuring a business sale with real estate is matching the structure to your buyer type. PE-backed buyers and individual SBA buyers have fundamentally different preferences when commercial real estate is part of the deal, and those preferences should shape how you package and position the transaction before you…
Nashville’s commercial real estate market has been one of the most active in the Southeast over the past decade, and that activity has created some unusual dynamics for business owners who own the buildings they operate from. When commercial property values increase as rapidly as they have in the Nashville metro, the real estate component…
When a business and commercial real estate are sold together in a single transaction, the IRS requires both buyer and seller to agree on how the total purchase price is allocated across asset classes. This allocation is not a formality. It has direct, significant, and often opposing tax consequences for each party. Getting it right…
One of the least understood variables in buying or selling a business with real estate is how the financing term on the property affects the buyer’s total debt service, and by extension, what they can afford to offer you. SBA loans used for business acquisitions without real estate are typically structured on 10-year terms. When…
A sale-leaseback is one of the most powerful tools available to business owners selling a company that owns real estate, and one of the most misunderstood. Done well, it converts your building into a long-term income stream while still capturing the full value of the business sale. Done poorly, it creates a rent burden that…
If you are buying a business that owns its operating real estate, two SBA loan programs are available to you, and the difference between them in monthly cash flow can exceed $7,000 per month on a $2M acquisition. Most buyers and sellers do not understand this math until late in a deal, by which point…