If you plan on selling your business and you don't own the property on which it operates, it is prudent to clear your lease before exiting. Your business lease is a contract that gives you the legal right to operate your business from the rented space. If you have months or years remaining on your lease when you sell the business, you'll likely run into a myriad of problems unless you clear it in a timely manner. Your best move is to clear the lease legally far ahead of the date when the sale is finalized.
Ideally, you have prepared for this moment long before it arrives. Savvy business owners who lease properties plan ahead by incorporating provisions into their business leases that allow for an early exit in the event of a sale. Most landlords are willing to negotiate such provisions to give business owners an “out” that permits them to legally clear the lease before it is up.
Yet most business owners don't have the foresight to push for such a provision. When they decide to sell the business, they are forced to find a means of legally clearing the lease. There are a few options when it comes to exiting an existing lease that has not reached its end. You can transfer the lease, renegotiate it or buy your way out of it. Regardless of what you choose, it should be performed fairly early in the sale process. This will ensure that the new owner will be able to operate the business without any conflicts and you'll be able to exit in a graceful manner. If you wait until the last minute, your sale has the potential to fall apart.
You must keep your landlord in the loop from the outset so that he is aware that a new owner will be operating the business from the property. If you include your landlord early on in the discussions, he'll be more inclined to work with you to legally clear the lease in a timely manner. When you bring him into the sales discussion, he'll be much more receptive to transferring or renewing the lease with the new owner. Remember, the landlord must be given ample time to ensure that the new owner is actually qualified to operate on the property and that he is fully capable of making lease payments in full and on time.
http://nymag.com/nymag/advertorial/toplawfirms/2012/gusrae-kaplan-nusbaum/
Ideally, you have prepared for this moment long before it arrives. Savvy business owners who lease properties plan ahead by incorporating provisions into their business leases that allow for an early exit in the event of a sale. Most landlords are willing to negotiate such provisions to give business owners an “out” that permits them to legally clear the lease before it is up.
Yet most business owners don't have the foresight to push for such a provision. When they decide to sell the business, they are forced to find a means of legally clearing the lease. There are a few options when it comes to exiting an existing lease that has not reached its end. You can transfer the lease, renegotiate it or buy your way out of it. Regardless of what you choose, it should be performed fairly early in the sale process. This will ensure that the new owner will be able to operate the business without any conflicts and you'll be able to exit in a graceful manner. If you wait until the last minute, your sale has the potential to fall apart.
You must keep your landlord in the loop from the outset so that he is aware that a new owner will be operating the business from the property. If you include your landlord early on in the discussions, he'll be more inclined to work with you to legally clear the lease in a timely manner. When you bring him into the sales discussion, he'll be much more receptive to transferring or renewing the lease with the new owner. Remember, the landlord must be given ample time to ensure that the new owner is actually qualified to operate on the property and that he is fully capable of making lease payments in full and on time.
http://nymag.com/nymag/advertorial/toplawfirms/2012/gusrae-kaplan-nusbaum/
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