Milwaukee Business Brokers Hub connects owners with a business valuation partner. Before that conversation, consider how to separate Business Value From Building Value.
Put the Ownership Structure on Paper
Identify who owns the building, the operating assets and any equipment. A property held in a separate company is not automatically part of the business sale.
Document rent, maintenance responsibilities and related party arrangements. A buyer needs to understand the occupancy cost the company will bear after closing.
An unusually low rent can make operating earnings appear stronger. Discuss a supportable market rent with the appropriate advisors before relying on those earnings for value.
What would the business earn after paying the rent that a new owner would actually need to pay?
Compare the Handoff Options
You might sell the company and property together, sell the company and remain its landlord, or market the real estate separately. The right choice depends on financing, risk and your own plans.
Compare the proceeds and obligations under each option. Remaining a landlord keeps an investment and its responsibilities; it is not the same as leaving the business entirely.
Bring the lease and property records into the conversation early. An uncertain right to occupy the building can delay a transaction even when the operating company is attractive.