Selling a retail store

The problem

Plenty of good businesses don’t sell for what they’re worth, or don’t sell at all. Buyers walk away when the books aren’t clean, the business depends too much on the owner, or one customer is too big a share of sales.

And the real estate can kill a deal late: a landlord who won’t consent to an assignment, a lease with too little term left, or a property question nobody looked at early.

What I do about it

I start with a confidential look at the business and the real estate together, so the things that make buyers nervous get fixed before they ever see them. I know what active buyers are looking for, I help you get the business ready, and I handle the lease or property side, which is where a lot of sales get stuck.

Everything goes through Coldwell Banker Prestige Realty and is agreed in writing first.

Ready now or planning ahead, the first step is the same. See succession planning for what happens on the first call, realistic timing and what to gather.

What buyers in this space look for

• The location and the lease. Foot traffic, the co-tenants nearby, time left on the lease and any options to renew.
• Sales that are steady or growing, with records that match the tax filings.
• Inventory that is current. Old stock gets discounted or left out of the price. Most deals count inventory at closing.
• Supplier and brand relationships that will carry over, and for a franchise, the franchisor’s approval.
• Online sales and customer lists that come with the business.

Why and when owners sell

Retirement, a move, or wanting to do something new. Some owners sell when the lease is coming up and they don’t want to sign for another five years. That timing can work, as long as a buyer can get a lease they can live with.

How a confidential sale works

1. A first conversation. Just us. What you have, what you want and when.
2. A quiet look at the business and the real estate. I can tell you what buyers are likely to like and where they’ll push.
3. Getting ready. Statements, the lease or property, a list of what’s included. Your accountant and lawyer come in early.
4. Approaching buyers carefully. A short, anonymous summary first. Details only after a confidentiality agreement, and only to buyers you’re comfortable with.
5. Offers and due diligence. Usually a letter of intent, then a closer look at the books, contracts, staff, equipment and the lease.
6. The lease or property. Landlord consent and a release, or the property terms if you own the building. This is where deals often stall, so I start on it early.
7. Closing and handover. Many owners stay on for a set period to help with the transition, if they want to.

Where the real estate fits

The buyer will usually take over your lease, which needs the landlord’s consent. If your lease is short, I can help you talk to the landlord about a renewal or a new lease for the buyer before you go to market.

Any work I do on a sale is through Coldwell Banker Prestige Realty and agreed in writing first. Where the sale is shares only, with no real estate, I’ll say so up front and work with your lawyer and accountant on those parts.

Where everybody wins

You want a fair price, care for your staff and customers, and a clean exit. A buyer wants a well-run business they can trust, with a lease or property that supports it. A landlord wants a strong new tenant.

When the business is ready and the real estate is sorted early, all three can say yes.

Questions people ask

How is inventory handled when I sell my store?

Usually it is counted near closing and paid for on top of the price at cost, or at an agreed value. Old or damaged stock is often left out. Agree on the method early.

Can I sell a franchise location?

Usually, with the franchisor’s approval. They often have their own transfer process and fees, so read your franchise agreement first.

What if my lease is almost up?

Talk to me before you go to market. A renewal or a new lease lined up for the buyer can make the business much easier to sell.