Selling Your Business? Get Your Ducks in a Row

As commercial brokers, our work often overlaps with that of business brokers. When owners decide to sell, one of the first strategic questions is whether to include the real estate in the transaction or sell the business and property separately. In some cases, the real estate represents the majority of the total value; in others, it’s a smaller supporting piece. We’re frequently asked to advise on both the operating business and the underlying property. This naturally brings us to the art and importance of accurate business valuation.

Why Closely Held Businesses Need Extra Preparation

Many small and medium-sized businesses (SMBs) are family-owned or closely held. Unlike larger institutions, they often lack polished accounting systems, formal reporting, and sophisticated financial controls. This creates real challenges during buyer due diligence. 

The most common pressure points we see include:

– Personal expenses run through the business

– Due-to/due-from balances with related entities or family members

– Outdated or incomplete operating financial statements

These issues almost always lead buyers to discount the stated cash flows. For an SMB, value is demonstrated by clean, verifiable financial performance.

Engage Early — Before You Go to Market

We strongly recommend starting a consultative process with a qualified business broker well before listing the business. An experienced broker can quickly identify areas that may create uncertainty or undermine perceived performance. This early review gives you and your accounting team time to reclassify entries, resolve related-party balances, update reconciliations, and present the strongest possible financial picture.

Selling a business is often a key part of an owner’s retirement or exit strategy. Failing to present clean, defensible financials can result in a longer sales process, more aggressive negotiations, or a lower final price.

Lease Term: A Potential Deal Killer

If you don’t own the real estate, the remaining term on your lease matters more than many sellers realize. Will it give a new owner enough security to justify their investment and growth plans? 

We routinely counsel sellers to speak with their landlord early about adding a renewal option or extending the term. Providing that extra runway makes the opportunity significantly more attractive to qualified buyers.

Excess Cash: Address It Before Buyers Do

Business owners sometimes keep substantial cash inside the company — either as an operational buffer or, informally, as a personal savings vehicle. Once the business is on the market, every asset (including excess cash) comes under scrutiny. 

In most cases, it’s cleaner and more strategic to address non-operating cash well in advance of a sale. This prevents unnecessary complications during valuation discussions and keeps the focus on the business’s true earning power.

Better Preparation Leads to Better Outcomes

The most successful business sales we see are those where the owner invested time upfront with the right advisors to build a clear, credible, and professional sales package. Any experienced broker should welcome the opportunity to help you lay that foundation — because it directly drives stronger results.

If you’re a business owner in the Tampa Bay area thinking about selling and want help reviewing your financials, lease situation, and real estate strategy before going to market, I’d be happy to have a confidential conversation. A short pre-sale review can uncover opportunities and prevent costly surprises later in the process.