Why Lease Terms Can Make or Break Your Business Purchase
Key Takeaways
• Weak lease terms can create lender concerns
• SBA financing often depends on adequate lease duration
• Buyers evaluate occupancy stability carefully
• Poor lease structure can reduce valuation
• Transferability issues can delay or kill deals
• Sellers should address lease concerns before going to market
For many businesses, especially owner-operated companies, the lease is more than just a real estate issue. It becomes a major underwriting consideration for both buyers and lenders.
Planning can significantly improve deal certainty and overall business transferability.
Do you know why lease terms can make or break your business purchase?
One of the most overlooked factors in buying or selling a business is the lease structure. While many owners focus heavily on EBITDA and revenue, buyers and lenders often place significant weight on the lease agreement’s transferability and strength.
In this short video, Wayne Wright of Wright Business Advisors explains why lease terms can materially impact business value, financing, buyer confidence, and ultimately whether a transaction successfully closes.
Thinking about selling your business in the next few years?
Proper preparation today can dramatically improve buyer confidence and maximize value at closing.
Schedule a confidential consultation with Wayne Wright at Wright Business Advisors.