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Commercial Lease Assignment When Selling Your Business: Problems

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Commercial Lease Assignment When Selling Your Business by  Neal Isaacs Commercial Lease Assignment When Selling Your Business: Problems As part of selling your business, the lease can be one of the most overlooked barriers to completing the deal.  The buyer and seller may have a “meeting of the minds” when it comes to the lease, but if it isn’t assigned they have nothing to buy or sell.  Let’s explore a few of the common issues that come up related to a lease in the sale of a small business. Inadequate Time Remaining on the Lease Ideally, a tenant should sell a small business with more than three years left on the lease.  The takeaway here is the longer the better. It’s not uncommon for me to meet a seller who is going “month-to-month” on a lease and proud of it.  In their mind they’ve reduced their commitment to the business, but in the buyer’s mind one of the largest expenses of the business is unsecured and at risk of inflation.  The bu...

Commercial lease Business broker Vincent Murphy selling your business what are you signing

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Commercial lease Business broker Vincent Murphy selling your business what are you signing Posted on  October 11, 2018   admin Posted in  Uncategorized Vincent Murphy Business Broker For many entrepreneurs signing a lease seems like renting an apartment – a Tennant/Lessee agrees to pay a certain fee to Lessor/Agent per month. Right? Nothing could be further from the truth. The first lease many entrepreneurs sign is usually short-term because who knows if the business is even going to work. But say it does and now it’s starting to grow — you need a new spot either for  a better  location, better facility or larger space. The second lease you sign is often pivotal in the survival of your business. The terms of your lease can act  as  a slow leak in your tires or can leave the door open to incur huge expenses when the unexpected happens. Leases are legal contracts and should be examined closely and, more importantly, understood completely b...

Sales 1 million to 10 Million Revenue Murphy Business Brokers Sales

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Sales 1 million to 10 Million Revenue Vincent Murphy Business Intermediary Vincent Murphy Business Broker Murphy Business Sales Mergers & Acquisitions Vincent Murphy Smaller Mergers & Acquisitions with Murphy Business Sales 1 million to 10 Million Revenue Mergers & Acquisitions with Murphy Business If the buyer of your business is likely to be another company or a private equity group, then our Mergers & Acquisitions (M & A) Division can be of most help to you. Most of these buyers have people with significant experience acquiring privately-held companies such as yours. Having our M & A Division on your side helps steady the negotiating table and levels the playing field. Private Equity Groups Our Mergers and Acquisition (M & A) Division is focused on companies with revenues from $2.5 Million to $100 Million. They are the business brokers who maintain contact with the hundreds of Private Equity Groups who have raised m...

How to Calculate the Cap Rate Murphy Business Brokers Vincent Murphy Yes we can sell your business and your commercial property

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How to Calculate the Cap Rate The  cap rate  is an important concept in commercial real estate and it is widely used. There is often confusion about how to calculate the cap rate using various methods. The purpose of this article is to demonstrate several ways to calculate the cap rate. How to Calculate the Cap Rate Ratio Perhaps the simplest place to start is to calculate the actual cap rate ratio. The cap rate ratio is just  net operating income (NOI)  divided by value, so if we know what a property’s net operating income is and we also know what a property’s value is, then we can easily calculate the cap rate. For example, suppose we know that a property has an NOI of $100,000 and a value of $1,000,000. Then we can calculate a cap rate by dividing $100,000 by $1,000,000: This results in a cap rate of 10%. How to Calculate the Cap Rate with Sales Comps Since a property’s value is often what we don’t know, it is common to simply divide our k...
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Vincent Murphy Business Broker The Three Things I love about my  business broker and Merger & acquisitions  The ability to qualify well is a skill procured by commercial real estate professionals after many years in the industry. And yes, it is a skill likely acquired through failure, or in some cases, getting burnt by an unscrupulous client. But if a qualified prospect or client is “ready, willing and able”, what are the 3 analogous characteristics of a truly qualified and successful Business Broker and commercial real estate professional? The three keys to commercial real estate success are the individual’s command of 1) Skill, 2) Will, and 3) Thrill. 1) SKILL Skill is not talent; don’t confuse the two. I have worked with many talented brokers, managers and mortgage brokers. They were naturally charismatic, very astute in a particular element of a transaction or a good negotiator. Many of us are born with certain talents but n...

10 Things You Need to Doto sell your business

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Vincent Murphy Business Broker 10 Things You Need to Do to sell your business #1.  Call me and I'll take care of the other 9! Vincent Murphy 617-892-4554 website BusinessBrokerVinceMurphy.com [ [caption id="attachment_2182" align="alignnone" width="242"] Vincent Murphy Business Broker IBBA member[/caption]
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