Commercial Real Estate in Minnesota
Buying a Business
Unlike buying a home, buying a business requires a fair amount of research to determine if a particular business and it's location are a good investment, and due diligence to determine the validity on financial statements offered by the seller. Every business has some way of determining the correctness of the reported or stated income. In most cases, the sellers pay commission to the brokers involved, so there is seldom any brokerage commission cost to the buyer for the peace of mind that competent representation can give.
Selling a Business
Selling a business requires some preparation to maximize price and improve the marketability of the property. It is best if you can begin to posture your company for the sale at least one year prior to actually putting the business on the market. By the end of the “prep” year, the business should be reporting as much income as is possible and should be running as “lean” as practical. Books and records should be kept on a monthly basis. Profit and Loss Statements, along with Balance Sheets should be generated monthly.
Determining the price is an area where an experienced broker can really help. Sellers often put a price tag on their business based on how much money they need to retire comfortably or on how much money they need to purchase another high quality investment. This method of valuation usually leads to seller frustration, a considerable waste of time and the business rarely sells. On the other hand, some sellers become so anxious to sell that they establish a sales price far below market value, just to obtain a quick sale.
When you use a real estate agent, you are in effect, hiring someone to watch out for your best interests in a real estate transaction and to give you counseling and guidance when buying or selling real property. (click here to find out more about real estate agent relationships in Minnesota) We, at ComeHome2Minnesota Realty would love to be your guide.
ComeHome2Minnesota Realty is a local, family owned real estate company. We take great pride in giving our clients the best representation available. We even go beyond most peoples expectations.
When everything is said and done, we're here for you, to assist you with your next commercial transaction.
Call us today at: (651) 983-7114 or
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