Many of our clients have a few years left on their lease agreement when we bring a buyer to the table. We will work with the Landlord on our client’s behalf to obtain their consent to a lease assignment. This helps ensure a seamless transaction for all parties involved.
If you are contemplating selling your medical practice, below is a 10-step process for negotiating a lease assignment to sell your business:
- 1. Examine the Lease Assignment Clause in the Lease Agreement
- 2. Before Listing Your Business, Approach The Landlord or Property Manager
- 3. Decide if you Want Your Current Lease Assigned or a New Lease For The Buyer
- 4. Come Up With Your “Reason For Selling” Story
- 5. Determine Whether You Want or Need The Assistance of a Leasing Consultant
- 6. Decide What You’ll Tell the Buyer About the Landlord, Lease, and Property
- 7. Make Sure The Buyers Financials Are In Order
- 8. Determine When, Where, and How You Will Introduce the Buyer to the Landlord
- 9. Submit an Official “Request Notice for Assignment” in Writing With Payment
- 10. Complete The Lease Assignment Agreement Review and Negotiation Process
1. Examine the Lease Assignment Clause in the Lease Agreement
The first step is to review the lease agreement to determine if there is an assignment provision and what, if any, restrictions exist. If there is no assignment provision, the tenant will need to negotiate this with the landlord.
2. Before Listing Your Business, Approach The Landlord or Property Manager
The tenant should reach out to the landlord or property manager to notify them of their intent to sell the business and request their consent to assign the lease.
3. Decide if you Want Your Current Lease Assigned or a New Lease For The Buyer
The tenant should decide whether they want to assign their current lease agreement to the buyer or have the buyer negotiate a new lease agreement with the landlord.
4. Come Up With Your “Reason For Selling” Story
The tenant should be prepared to provide the landlord with a reason for wanting to sell the business and assign the lease. This can include wanting to retire, relocating, downsizing, etc.
5. Determine Whether You Want or Need The Assistance of a Leasing Consultant
The tenant may want to consider hiring a leasing consultant or broker to assist with the negotiation process. This professional can help ensure that the tenant’s interests are represented and that they are getting the best possible terms.
6. Decide What You’ll Tell the Buyer About the Landlord, Lease, and Property
The tenant should decide what information they want to disclose to the potential buyer about the landlord, lease, and property. This can be helpful in negotiating the terms of the sale and lease assignment.
7. Make Sure The Buyers Financials Are In Order
The tenant should require the potential buyer to provide financial information to demonstrate that they are able to assume the lease and make any necessary improvements to the property.
8. Determine When, Where, and How You Will Introduce the Buyer to the Landlord
The tenant should decide when, where, and how they will introduce the potential buyer to the landlord. This can be helpful in establishing a good rapport and demonstrating the buyer’s seriousness.
9. Submit an Official “Request Notice for Assignment” in Writing With Payment
The tenant should submit an official “Request for Notice of Assignment” in writing to the landlord along with any required payment. This will formalize the request and help ensure that the landlord gives proper consideration.
10. Complete The Lease Assignment Agreement Review and Negotiation Process
The final step is to complete the lease assignment agreement review and negotiation process. This will ensure that all parties are in agreement with the terms of the sale and lease assignment.
If you would like to know more about our firm or services, please contact us today.
