Seller Newsletter

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Challenge: Selling a business for retiring owners who also own the underlying real estate.

In depth: One of our agents represented successful owners of a niche supplier of special event productions. The owners had enjoyed a long run in the business but were tired and ready to step back from the deadlines and travel that also came with success.

To further complicate (but also to make things interesting!) they also owned a very large warehouse facility that housed the business but probably would not be needed by a new owner of the business, if one could be found.

So we listed both the business and the real estate, we do it all the time, and began searching for the right buyer for each entity. As often happens, the owners provided us a short list of people already in the industry whom they knew and respected and whom they suggested might be the right buyers if presented a comprehensive package of what was available.

We began to canvass those prospects and more, and in remarkably short order, we identified what we believed to be the perfect buyer. Local to the market, very successful in his own right. And perhaps most important, both he and the owners had mutual respect for each other right from the start.

Negotiations were friendly from Day One and a deal was soon struck. As we anticipated, the buyer was not interested in the underlying real estate. So what do we do about that?

Fortunately, we had recently sold two businesses to another solid buyer. Someone we knew who was needing a larger facility in the same general area of the city. Again, after a brief round of introductions and a tour of the facility, it was quickly agreed that we had a great match.

Favorable financing was obtained and within 60 days we had a closing on the real estate as well. Terms were arranged for an orderly withdrawal of the seller’s furniture, fixtures and equipment, most of which was purchased by the first buyer, and the real estate buyers now had a super facility to continue the strong growth of their business.

A key factor in closing both these deals was our knowledge base of who in the marketplace is looking to expand, and where. You can always say there is some luck involved and that was true here as well. But we would like to think that the expertise and extensive database we maintain had a lot to do with putting these two deals together in short order.

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Selling a business when real estate is involved

January 22, 2026

Around one-third of the businesses that we list for sale also involve the sale of the underlying real estate. As licensed real estate brokers and agents we can handle all of the details of that transaction too-from showing the property, guiding the process through a title company, ensuring that the buyers perform adequate due diligence, obtaining proper environmental reports and clearances, getting suitable financing for the transaction and more. In short, when you list your business with First National Business Corporation, there will be no worries about any aspect of completing the transaction to the satisfaction of all parties. Always a concern when real estate is involved: what is the right price for the real estate? You can be sure that when bank financing will be involved there will be an appraisal required by the lender. An appraisal that is a year or two old won’t pass muster. Different lenders may vary on the degree of complexity required: obviously a two-million-dollar property will necessitate a more thorough examination than a one-hundred-thousand-dollar parcel. Here is what we will make sure doesn’t happen: we won’t take the listing at some exorbitant price just for the sake of adding a listing to our books. That doesn’t do FNBC any good as the broker. It doesn’t do the business and property owner any good either. A listing priced too high will run off the serious, qualified buyers. The only lookers we will get for those kinds of listings will either be unqualified or eventually come to the realization that it is a bad business deal in the making. Remember: we do want to list both your business and any underlying real estate for the maximum amount that can be substantiated. Not only does that provide you with greatest yield when the deal closes, but we are on commission on every deal. That is a win-win for both the client and the broker. But we need to remain realistic and keep the listing price very near the true value of the deal. We not only have to convince a buyer that the deal is worth the money-we have to convince a lender to provide the capital. We have many resources at our disposal to help determine the value of underlying real estate. You may decide to hold on to the real estate and only sell the business. We are prepared to help you compare all the options; then you select the one that makes sense for your situation.

This week's Featured Broker

December 16, 2025

Mike was a small businesses owner in central Kansas for over 25 years. He sold the companies before moving to Kansas City in 2003. He has been a business broker for 10 years and worked as an SBA loan officer. Mike understands the importance of running your business with an end game in mind. As a former SBA loan officer, he has the expertise to help you understand and prepare for the questions lenders will ask before funding a business acquisition. Having a broker and experienced lender on your side is crucial to successfully navigate the buying, selling and funding processes. Mike has two children and four grandchildren. Mike enjoys traveling, music, movies, golf, watching the Chiefs and spending time with his family.