Brokering, Buying, or Selling a Business

When a business is being bought or sold, the sale can include the land and building the business occupies, or the seller may be retaining ownership of the land and building and selling only the going business.

The going business is often referred to as a “business opportunity”. I will focus just on the business opportunity aspect of the transaction.

Putting together the purchase or sale of a business is a challenge for many reasons. With real estate, title insurance is available. First, and most important, there is no title insurance for sales of businesses. The buyer must do due diligence to confirm that the seller owns what he is selling.fifty-dollar-bill

Next, a business opportunity has more moving parts than a simple real estate transaction. Some of the additional components are as follows:

If the seller does not own the land on which the business is situated, there will be a lease, which must be dealt with. A lease can be assumed with or without release of liability for the seller. If the lease is expiring, a new lease must be worked out.

The business includes inventory. The sale price is often X dollars plus the value of the inventory. The time and method of doing inventory must be spelled out, and there must be agreement as to whether inventory is valued at cost or below cost by a certain percentage. The buyer sometimes has the right to decline to purchase certain classes of inventory, such as old inventory or inventory which is not readily saleable.

deal-or-no-dealA title search can be done through the Secretary of State. All mortgages against personal property must be filed in Olympia with the Secretary of State.

Generally there is a down payment of part of the purchase price with the seller carrying the balance. Of the buyer may be able to pay all cash, perhaps by getting private financing, an SBA loan, or some other financing. The buyer might obtain new financing for part of the cost and carry back part of the balance in second position, which is more risky for the seller. There might be extra collateral given, which is called side security.

I could go on and on.

I have structured and closed scores of business opportunity transactions. I am available to work with brokers, buyers, and/or sellers to get these transactions set up properly so there will be a clean closing.

Brokers who lack experience with business sales might bring me in as a co-broker, with part of the commission going to me at closing. I a licensed not only as an attorney but also as a real estate broker. This does not necessarily have to cost the listing brokers anything. The seller might agree on an increase in the commission sufficient to cover my fee. Naturally, I charge more if I am going to be paid only if the transaction closes than if I am charging the buyer or seller by the hour.

If you are a buyer or seller and you have been lucky enough to find each other, I am also available to help you structure your transaction and get it into escrow. I can work for buyer or seller but not for both.

I have an open line to brokers, buyers, and sellers to talk generally about transactions where I might help with.

Click here to sign up for my email list.images-251-stop-continue

James Robert Deal, Broker and Attorney
Broker with Agency One Realty LLC
WSBA # 8103, DOL # 39666
425-774-6611, 888-999-2022
425-776-8081 fax

James at James Deal dot com

James Robert Deal, Attorney & Broker

James Robert Deal, Attorney & Broker


Anti-vaxxer want informed consent and liberty

Anti-vaxxer want informed consent and liberty Ada Drinkwater, Wife mother grandmother great grandmother Liberty & informed consent are not only the American Way, but a part of every document of medical ethics. Informed consent is also a part of the National...

Tetanus Vaccine – TDaP – No Proof Of Safety

The US Institute of Medicine concluded that the evidence is inadequate to accept or reject a causal relationship between the DTap vaccine and autism. How then can the CDC make the blanket claim that vaccines do not cause autism?...

Sign In

CLICK HERE TOSIGN UP FOR A BETTER PROPERTY SEARCH TOOLYou will be asked for your email address and your telephone number.You do not have to enter your telephone number. You can enter any ten digit number if you want to retain your privacy. If you want me...

Home Renovation Can Cost A Lot

Reality check: Don’t fall for these TV home renovation fibs Kitchen and bathroom remodels can cost more and take longer than HGTV shows lead you to believe. · by Sharon Salyer · Saturday, January 26, 2019 These before-and-after photos of this Edmonds...

Real Estate Calculations Every Investor Should Memorize

The Top 8 Real Estate Calculations Every Investor Should Memorize by Andrew Syrios | Despite what many of us math-allergic folk would prefer, real estate does involve...

Ten Mistakes Investors Should Avoid

10 Lethal Mistakes to Avoid on Your First Real Estate Investment by Chad Carson | You may have heard that your first real estate investment is the...

How to Make Earnest Money Non-Refundable

Click here if you are having trouble viewing this message. Weekly Membership Newsletter JANUARY 8, 2019 • Stay Connected! QUESTION: I have been asked a few times about non-refundable earnest monies. If a seller, who is a builder, is requesting that earnest monies be...

4 Different Types of LLCs and the Ways They Pay Taxes

4 Different Types of LLCs and the Ways They Pay Taxes by Scott Smith | The following is meant for informational purposes and is not legal advice. For...

Home Inspection Questions

What Buyers Should Ask After a Home Inspection October 9, 2018 After an inspector has finished a home report, buyers may feel overwhelmed by any flaws that might have been found. That’s why it’s important they take the opportunity to learn more so that they can move...

Door Knocking to Find Real Estate Sellers

29 Door Knocking Resources for Successful Lead Generation Posted by REDX January is the perfect time to door knock. Most people wait until the holidays are over to list their home, and more homes are listed in January than any other month. This presents a once-a-year...

How To Choose A Domain Name – by Saul Klein

Choosing Your Domain in the Age of Dot ANYTHING Written by Saul Klein Posted On Friday, 14 September 2018 13:00 · As the Internet continues to...

Mistakes Sellers Make

5 Mistakes Home Sellers Make Written by David Reed Posted On Friday, 14 September 2018 21:56 There’s no shortage of advice for home buyers. Getting approved for a...

Cell Towers Reduce Property Values

Survey by the National Institute for Science, Law & Public Policy Indicates Cell Towers and Antennas Negatively Impact Interest in Real Estate Properties 94% of respondents said a nearby cell tower or group of antennas would negatively impact interest in a...

Reciprocal Easements by Prescription

Reciprocal Usage Easements? What is the Purpose? Many buildings that were constructed prior to the 1960s lacked adequate parking, and/or even on-site common usage with for ingress/egress of automobiles. In property law, ingress/egress referred to rights of a person to...

The Downside of Smart Homes

The Downsides Of Selling A “Smart Tech” House Posted on August 4, 2018Natural Living · · · · · · · Like By Catherine J. Frompovich Listen to Article Will your “smart home” become a true headache and liability when you...

Where Americans Move To – Where they Moved From

Just a few years ago, experts indicated Americans (especially young Americans) were more interested in a different lifestyle than previous generations. Instead of owning a house in the suburbs, the new American dream consisted of renting an apartment in the city....

Selling FSBO Can Cost Sellers A Lot Of Money

Selling Your Home Solo to Save Money? You’ll Actually Make Less Than You Think Posted in Economist Commentaries, by Amanda Riggs on July 9, 2018 385 Some homeowners opt to sell their residence without a real estate agent to get around paying a commission and make more...

Renew the National Flood Insurance Program (NFIP)

RENEW FLOOD INSURANCE BUT QUIT SELLING NEW COVERAGE AND QUIT BUILDING NEW HOMES IN FLOOD ZONES SEA LEVELS ARE RISING Can't read or see images? View this email in a browser Have you taken action yet? Time is Running Out Dear Emelyn, The National Flood Insurance Program...

Underwater Properties – Due to Climate Change

Climate Change Will Force the Poor From Their Homes Low-Lying towns and Homes in Washington will be affected too Alamy This story originally appeared on CityLab and is part of the Climate Desk collaboration. It’s no surprise that a list of places most at risk from...

The Foreclosure Train Rolls On

The Foreclosure Train Rolls On

Private corporations such as Loan Star and Caliber bought thousands of mortgages. The government pays them to modify mortgages, but they are quick to foreclose. They invest in high value instead of low value homes. They should be required to serve the interest of the local neighborhood as are banks. They should be regulated as banks.

Subscribe To Our Newsletter

Join our mailing list to receive our latest news and updates.

You have Successfully Subscribed!

Pin It on Pinterest

Share This