ServicesBusiness and Property Sales
Business and Property Sales in Elgin
When you own the business and the building it runs from, you have two assets with two values and two kinds of buyers. We value both, tell you whether to sell them together or keep the property and lease it, and run one coordinated, confidential sale.
One sale, two assets, priced separately
A business is valued on its earnings: seller's discretionary earnings or EBITDA, multiplied by what buyers in that industry pay. Real estate is valued on comparable sales, replacement cost and the rent it could command. Blending the two into one number hides what each is worth and makes lenders nervous. We price them side by side so a buyer, a bank and an appraiser can all follow the math.
Our first advice is usually to fix what can be fixed before you list: a missing lease between you and your own company, a rent figure that is below market, a survey that was never done. Sorting those out often keeps the sale whole. When the property is worth far more than the business can carry, we will say so plainly and show you how a sale of the business with a lease, or a later sale of the building, protects more of your money.
Across Elgin and nearby towns like Manor, Hutto and Taylor, many owner-operators hold their land outright, so this question comes up often. Our record includes over $5 million in businesses sold, and the property side of a deal gets the same line-by-line attention.
What we handle in a business and property sale
Separate business and real estate values
We build the business valuation from your tax returns and profit and loss statements, then work with a real estate appraiser or broker's opinion on the land and building. You see each number and how it was reached.
Market rent analysis
If you keep the building, the rent sets your income and the buyer's costs. Rent set too high drags down the business value; too low shortchanges you as landlord. We find the figure both sides can defend.
Sell together or lease decision
We compare total proceeds, tax treatment and buyer pool for each path. Some buyers can only afford the business; others want the real estate for long-term security.
Purchase price allocation
Buyers and sellers both report the split between land, building, equipment, goodwill and other assets to the IRS. We help you and your CPA set an allocation that matches the valuation and holds up.
Due diligence package
We gather the title commitment, survey, any existing environmental reports, lease documents and financials into one organized set so a buyer's lender is not left waiting.
Coordinated closing
The business purchase agreement and the real estate contract usually close the same day through a title company. We keep both timelines lined up so neither deal stalls the other.
Signs your sale needs a property plan
You pay yourself no rent
If your company uses the building rent-free, its books overstate profit. Buyers and lenders will adjust for rent, so we set a fair figure before listing.
The building is worth more than the business
A strong real estate value can price out every qualified buyer for the operating company. That usually points toward a sale with a lease.
A buyer asked about the land first
Interest in the property before the business tells us who your market really is, and how to structure the offer.
There is old debt on the property
Existing liens must be paid off or assumed at closing. We map the payoff early so it does not surprise anyone at the title table.
You want income after you exit
Keeping the building and collecting rent can replace part of your salary. We check whether the numbers support it.
How a combined sale moves from first call to closing
- 1
Confidential valuation call
You tell us about the business and the property by phone or video. We list the documents we need: three years of returns, current financials, the deed and any surveys.
- 2
Two valuations and a recommendation
We deliver the business value and the property value with our advice on selling together, leasing, or selling in stages. If something can be fixed first, we explain what and why.
- 3
Confidential marketing
We write a blind profile that hides your name and address. New listings go to registered buyers first, and anyone who wants detail signs a nondisclosure agreement.
- 4
Offers, financing and diligence
We screen buyers for funds and lender fit, since a business with real estate is often financed with an SBA loan that covers both. Then we manage the inspection and document requests.
- 5
Closing both contracts
We work with your attorney, CPA and the title company so the business and property transfer together, or the lease signs at the same table.
What moves the price of selling a business with its building
You pay nothing up front when you list your business with us, and there is no retainer to sign. We are paid at closing from the sale itself, so if the seller is not paid, neither are we. The amount of work involved, and the terms you finish with, come down to a few factors.
- Deal structure
- Selling everything to one buyer is simpler than a business sale plus a negotiated lease or a separate property sale later.
- Condition of the paperwork
- Missing surveys, unclear title or untidy financials add time. Clean records shorten diligence.
- Third-party reports
- Lenders may require an appraisal or a Phase I environmental site assessment, especially for fuel, automotive or manufacturing sites. Those are paid to outside firms.
- Size of the combined deal
- Larger transactions draw more buyers and lenders, and more negotiation on price allocation and terms.
Questions about selling a business with its property
Something not covered here? (512) 881-0683
Should I sell my building with the business or keep it?
It depends on how the property value compares with the business value, your tax position and whether you want rental income. Selling together widens the deal size and can narrow the buyer pool. Keeping it gives you rent but ties you to one tenant. We run both scenarios with you before you decide.
Can a buyer finance the business and the real estate in one loan?
Often, yes. SBA 7(a) loans can cover business and property together, and SBA 504 loans are built for owner-occupied real estate. Lenders look at the business's cash flow to repay the whole amount, so accurate financials matter.
How do you keep the sale confidential when the building is visible?
We never list the address in marketing. The profile describes the business type, region and financials, and only buyers who sign a nondisclosure agreement learn the name and location.
What if my company has never paid me rent?
That is common. We set a market rent and adjust the earnings so buyers see a true picture. Doing this before listing avoids a price drop late in the deal.
Who handles the real estate closing?
A title company typically closes the property side, with your attorney reviewing the contracts. We coordinate dates, documents and the allocation so both pieces finish together.
Find out what your business and building are each worth
One call gets you a free, confidential valuation and a straight answer on whether to sell the property, lease it or hold it. If you are a buyer, we can talk through current listings that include real estate.