Most of the time when you are buying a business, there will be some land included in your purchase. Don’t underestimate this portion of the deal. It may only be one of many line items in the acquisition, but you need to give it the same attention and research you would give the process of finding your own home. Here are some real estate tips for people looking to buy a business.
3 Real Estate Tips for Buying a Business
- Get professional help: Your first step should be to talk to a commercial real estate With all the difficulties of a business transaction, it’s easy to overlook the real estate component. Still, you wouldn’t buy a house without a real estate agent, and you certainly should never buy business property without an expert to help you along the way.
- Make sure the land is up to date on inspections: Hire your own inspector to ensure that everything about the property is up to date with both safety inspections and any business regulations. The last thing you want is to purchase your business and then discover that you will need to sink thousands of dollars into getting it past inspections.
- Check if the property is actually worth what they are asking: While it’s rare for someone to buy a personal home without looking into the market value, it’s much more common for business leaders to forget to do their due diligence on commercial real estate. Don’t let the complexity of other aspects of the deal distract you from doing your research. Consult with your business broker, attorney and commercial real estate agent to negotiate the best possible price. Consider factors such as location and market conditions when evaluating the quality of the deal. This is also a good time to consider whether or not the location is advantageous for the type of business you are purchasing.
Don’t underestimate the challenge of managing the real estate portion of your business. Whether you are buying a large vineyard or a small office for your software company, this is still a large purchase that deserves your full attention. If you need help navigating the legal difficulties of commercial real estate or other factors in a large business transaction, you should seek the counsel of an attorney.
Garland & Mason, LLC is law firm of New Jersey business lawyers with a passionate for helping their clients achieve business success.