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Selling Business

Business Law discussions

Selling Business

Postby Seabright » Fri Sep 16, 2016 5:18 pm

 I have a business with 3 1/2 years left on my lease. There is a buyer wants to buy my business.  My question is, is there anyway landlord can stop me selling the business by law? The buyer can continue my lease? This is of course providing buyer has good enough credit to lease.  Your answer will be greatly appreciated. Thanks a million.  Your  
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Selling Business

Postby burnard83 » Mon Sep 19, 2016 12:44 pm

A lease is a contract between two parties, so you first have to look to the document to see what it says. Without seeing the lease, I don't know if there are any unusual provisions, but I would be surprised if the landlord could STOP you from selling your business.  On the other hand, it would not be unusual for the lease to provide that the landlord does not have to accept a new tenant or release you from the current lease.  A buyer might end up owning your assets but not be able to continue in your current premises.

You don't say whether you are selling the assets of the business(which is the most common situation in sales of closely held businesses) or selling your ownership interest in a business entity(such as selling 100% of the stock in a closely held corporation).  If you are doing the latter, unless the lease contains a provision dealing with a change of control, the corporation is still the tenant and there is little that the landlord can typically do.

If you are selling assets, you either will need to get the landlord to accept the new owner as a tenant(which would normally let you off the hook) or accept the new owner as a subtenant, with a sublease from you to the new owner(which leaves you on the hook for the remainder of the term).  Again, the lease may clearly give you the right to sublet or it may say that "you have no right to sublet the premises without the approval of the landlord, which approval may be withheld in the landlord's sole and absolute discretion."

You should have an attorney take a look at your lease.  He or she should be able to quickly focus on the relevant provisions and tell you what your rights are.

Good luck.
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Selling Business

Postby ToniBraxton » Tue Sep 20, 2016 2:15 pm

 I have a business with 3 1/2 years left on my lease. There is a buyer wants to buy my business.  My question is, is there anyway landlord can stop me selling the business by law? The buyer can continue my lease? This is of course providing buyer has good enough credit to lease.  Your answer will be greatly appreciated. Thanks a million.  Your  
ToniBraxton
 
Posts: 44
Joined: Sat Feb 01, 2014 2:36 am


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