Companies that are weighing the possibility of selling certain business assets may find that there could be a variety of factors to address prior to initiating any transactions. While this process can be complex enough as is, things may grow even more challenging if there is a lease agreement in place. Several challenges can arise when attempting to sell business assets with an existing commercial lease, and companies in New York that face similar issues might have questions about how best to approach the situation.
Possible concerns
There may be several scenarios in which the presence of a commercial lease could impact the sale of business assets. Companies may find it more difficult to navigate similar types of transactions if there is insufficient time left on the current lease agreement. They could also encounter opposition if the property owner does not provide approval for the prospective buyer to take over lease obligations.
Similar endeavors may also carry certain financial challenges, such as the possibility of assignment fees. In some cases, agreeing to pay these fees may be necessary to receive approval from the property owner for transferring the lease to the purchasing party. Property owners may also retain the right to require buyers to pay a security deposit before initiating operations at the location, and such stipulations may also influence the decisions a buyer might make.
Seeking guidance
Companies that wish to sell business assets and have concerns about how the presence of a commercial lease might affect the situation could benefit from seeking advice prior to choosing a path. By consulting with an attorney, a company could obtain much-needed advice on the types of challenges that might arise and on the best course of action with which to proceed. An attorney can address a client’s goals and wishes and provide guidance in protecting the interests of the company through every step of the subsequent process.