In this series of articles, we are exploring a concept we often get asked about. Business owners wonder if selling a business is like selling real property investments, as many owners have some experience with these transactions. While there are some similarities, the differences are substantial. It can be costly to a business owner to draw conclusions based on selling real property investment and selling their privately held business without professional help.
Location
Let’s start with location. This is certainly an important characteristic of real property, as the location is fixed. Desirability of location is an important consideration when buying and selling real property. On the other hand, location is usually only important for privately held businesses that rely on customer traffic, such as retail establishments. Absent the need for customer traffic, location can be flexible, and businesses can operate in multiple locations. Revenue may also come from all over the world, both for brick and mortar businesses and those that offer online sales.
