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Business Brokers Base
(504) 555-0176

A clear view of your next chapter

Separate Business Value From Owned Real Estate

The operating company and its premises can have different buyers, financing needs and useful exit dates.

(504) 555-0176For owners considering a business sale

Business owners reviewing financial records beside a folder on a wooden desk.

Before you separate business value from owned real estate, consider the records and responsibilities involved. New Orleans Business Brokers Base can connect you with a valuation partner.

Recast rent before discussing the price

A business occupying your building should be evaluated with a realistic market rent. Cheap related party rent can inflate operating earnings compared with the costs a buyer will face.

Have the property reviewed separately. Business earnings and real estate income use different valuation methods, and book value does not settle either market value.

Compare the possible exits

You may sell both assets, sell the company and keep the property, or seek separate buyers. Consider cash received, ongoing landlord work and the risk of depending on one tenant.

A buyer able to finance the operating company may be unable or unwilling to buy the premises too. Keeping the transactions linked can narrow the available buyer pool.

Write the future relationship down

If you remain landlord, agree rent, renewals, repairs, insurance and assignment rights. A vague promise to work it out later can delay the company sale.

Discuss taxes and liability with your CPA and attorney before choosing the structure. A tax technique should support a sound business decision rather than dictate an unsuitable transaction.

Use the estimate form to start a private conversation, or call (504) 555-0176.