What Happens to My Lease When I Sell My Business?
Most small businesses in South Florida sell with a lease, and the lease can make or break the sale. The buyer needs to take it over, and the landlord has to agree.
Request a Confidential Business Valuation · (786) 914-1017
Assignment and Landlord Consent
Most commercial leases allow assignment only with the landlord's consent, and many set conditions: the new tenant's financial strength, experience in the use, an assignment fee, or a new lease at current rent. Read the clause before you list, because it tells you who can buy the business.
Remaining Term
A buyer's lender generally wants the lease, including options, to run at least as long as the loan, often ten years. If yours is short, negotiate an extension or a new option before you go to market, while you are the tenant the landlord already knows.
Your Personal Guarantee
Assigning the lease does not always release you. Many landlords keep the original tenant or guarantor liable unless the assignment says otherwise. Ask for a release as part of the landlord's consent, or limit the guarantee's term, and have your attorney review the assignment document.
If You Own the Property
You can sell the building with the business, or keep it and lease it to the buyer. A market-rate lease with enough term lets the buyer finance the business and gives you rent after the sale. The lease has to be at market rent for a lender to accept it.
Request a Confidential Business Valuation
Tell us the type of business, the city, how long it has operated, annual revenue, owner benefit or seller's discretionary earnings, EBITDA if you track it, monthly rent and lease expiry, number of employees, how involved you are, why you are selling, your timeline and whether you would consider seller financing. A licensed BreakThru business broker prepares a confidential valuation from comparable sales and replies within one business day. Everything you tell us is confidential, the valuation is free, and nothing is listed or announced unless you decide to sell. Prefer to talk now? Call (786) 914-1017.
Questions Owners Ask
- How much is my business worth?
- Most owner-operated businesses in South Florida sell for a multiple of seller's discretionary earnings: net profit plus the owner's salary, benefits and one-time or personal expenses run through the business. Where the multiple falls depends on the industry, the lease, the staff, the trend in the numbers and how much the business depends on you. A confidential valuation gives you the range for your business and the reasons behind it.
- Will my employees, customers or landlord find out?
- Not from us. The business is marketed without its name or address, buyers sign a non-disclosure agreement and prove their funds before they learn who you are, and showings happen after hours or are presented as something else. The landlord is approached only once there is an accepted offer, because the lease has to be assigned.
- How long does it take to sell a business?
- Six to nine months from listing to closing is common for a well-prepared small business, faster when the price is right and the records are clean, longer for businesses that need a licensed buyer or a franchisor's approval. The escrow period after an accepted offer is usually sixty to ninety days.
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Guides for Business Owners
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