

Laura DiFrancesco
Feb 4, 2025
Thinking of buying or selling a small business? Learn what real estate considerations you need to know!
Welcome back to Dealmaking with Laura DiFrancesco! In this episode, Laura discusses how buyer’s can approach a deal when there’s real estate in M&A transactions. Remember, just because the property is being leased does not mean that real estate is not involved in the transaction! Laura highlights the different implications of leased versus purchased real estate, and the proper steps to take in order to facilitate a smooth transition of ownership. She offers tips towards creating growth-based goals, analyzing a lease, and negotiating rent and responsibilities. Most importantly, she emphasizes the importance of figuring these terms out sooner rather than later, as real estate can play a pivotal role in the overall transaction.
What You’ll Learn
Leased versus Purchased Real Estate
// Understand the implications of whether the business property is leased versus owned and considerations to make in either situation.
Creating a Plan for Real Estate
// Discuss real estate with attorneys, lenders and investors early on to figure out what you are able to afford and negotiate.
Analyzing a Lease
// Compare your business needs, such as flexibility, growth, and location, with the terms of the lease to determine whether the lease is acceptable, needs to be renegotiated, or real estate ownership is right for your business.
Negotiating Rent and Responsibilities for Lease
// Discuss rent as soon as possible as well as whose job it is to maintain property, such as the roof, HVAC, etc.
Ownership Analysis
// Understand legal options that allow you to buy the property in the future, such as right of first refusal, right of first offer, and lease with an option to purchase.
Legal Implications
// Learn how decisions with respect to the real estate will affect your overall transaction, such as legal scope of work, timeline, and cost.
Episode Highlights:
[00:00] Introduction to Real Estate in Business Acquisition
[03:30] Leased versus Purchased Real Estate
[07:34] Negotiating Rent with the Seller
[09:43] Creating a Real Estate Plan
[12:18] Dean Street Law Ad
[13:16] Analyzing a Lease
[15:24] Negotiating Rent and Responsibilities
[18:54] Dean Street Law Resources
[20:40] Ownership Analysis
[25:53] Considerations for Purchasing Real Estate
[29:08] Acquisition Insights
[30:06] Legal Implications of Real Estate
[33:16] Environmental Inspection
[39:28] Outro
Resources Mentioned
For free legal guides and resources click HERE.
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Credits
Host // Laura DiFrancesco
Executive Producer // Teagan Rowland
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