How Your Premises Lease Affects the Value of
The terms of a premises lease can significantly affect the value of a business as well as how easy or difficult it may be to sell the business. A lease may be an asset to a new buyer or it may be a liability depending on its length and other terms. As part of the due diligence performed by prospective buyers, a buyer will almost always need to obtain the approval of the landlord as a condition of the sale. This sometimes involves the complete renegotiation of the lease terms. This may prove to be easy or extremely difficult depending on many factors including the financial capacity of the prospective buyer, the existing lease terms, and the leasing market. See Checklist for Commercial Leases and Glossary of Commercial Lease Terms. The brokers and agents with Pacific Business Advisors have extensive experience negotiating lease terms although buyers should always have their attorney review and approve any lease before signing it.