Medical and Dental Real Estate Leases Are Crucial Aspects of Your Business
Now that you have decided its time to sell your medical/dental practice, where do you go from here? You have built the business into a successful well oiled machine that has a great patient list as well as a great revenue stream but its time to move onto greener pastures. In most cases, the practice broker, accountant and lender focus on tax returns, P & L statements and balance sheets. All of this is valuable information but often times the lease agreement or lease renewal agreement can be the difference in selling or not selling your business.
LOCATION, LOCATION, LOCATION
As you have established business in a particular location chances are the buyer wants to stay in that location. If the lease has a lot of time remaining this can be done with a lease assignment. But do you have the right to assign your lease ? If not, the landlord may be able to prevent you from selling your business. Or, is the current lease a “fair “ deal. Is the rate a market rent for that area? If not, you may or may not be able to negotiate a better deal. Finally, does the selling doctor remain liable on the lease agreement? If he/she wants to retire to Florida staying on as a lease guarantor may not be a good model. Do you have the correct lease terms in place if you require construction in order to build out the space you desire? A lot of times you can negotiate a window of time to prevent yourself from paying several months rent while you can’t even operate your business due to construction and financing matters. These are all questions we have dealt with over the years.