An earlier post
referred to confirming permits and buying a building. This is another post on the same
subject.
Bob House recently
penned an article in INC. about
selling a business. The data is
astounding. He centers the piece on what
drives business value and that over 50 percent of the U.S. businesses are owned
by Baby Boomers who are getting along in years.
He also notes that the
median asking price is not equal to the asking price. However, the market continues to be brisk
(please note that the sales data only goes to the 3rd Q. of 2020).
One key point for a
buyer to consider is the purchase of a closed business and the facility. It is or could be an asset. The buyer might
want purchase or lease the building due to the location. It is often assumed that all the permits and
licenses are in place.
I suggest that you
verify with your local building department that indeed all required permits
were secured. The main reason is should
you want to or need to redo the interior you may find previous work in the
building was done without a permit. Even worse is construction could have been
completed, but not up to the building code.
So, to get your new interior
work completed, the current tenant or owner must bring the facility into
compliance. That means you must pay for
work done that you may not have wanted or needed. Or you will be required to
bring up any construction not up to code into compliance. And you must secure
the required permits.
In summary, it pays to
research the permitting and licensing of any existing facility you are
evaluating for lease or ownership.
Link to article: https://www.inc.com/bob-house/selling-a-business-during-a-pandemic-what-baby-boomers-can-learn-from-business-brokers.html?cid=search
