Real estate backed businesses
Many BC businesses own or control the real estate they operate from: a shop with the building, a workshop on industrial land, a motel, a care home, a car wash. When property and business are sold together, buyers and sellers routinely mis-price one or the other. We separate the two and value each on its own terms, alongside licensed realtors and lawyers.
What you leave with
You know what the business is worth, what the property is worth and how to structure a deal that treats them correctly.
Who it is for
- Owners selling a business together with the building or land it occupies
- Buyers evaluating a business where the property is a large part of the price
- Owners deciding whether to sell the property, lease it back or keep it
What we deliver
- A business valuation on normalised earnings with a market rent charged
- Coordination with a licensed appraiser or realtor on the property value
- Deal structure options: sell together, sell apart or lease the property back
- Sale-leaseback analysis and lease terms that protect the business value
- Negotiation and diligence coordination with your lawyer, CPA, realtor and lender
How it runs
01Separate
We split the business from the property, charge a market rent and value the operating company on its own.
02Property
A licensed appraiser or realtor values the real estate, and we reconcile the two numbers.
03Structure
We lay out the options for selling together or apart, with tax and financing implications flagged.
04Transact
We run or support the sale or purchase alongside the property professionals and your lawyer.
Engagement and fees
The business valuation is $3,500 flat. Sell-side engagements follow BizSell.ca pricing, and property transactions are handled by licensed realtors. Buyers start with a Business Acquisition consultation at $399. Every engagement is scoped after a call and confirmed in writing. See consultations and fees.
Why the two must be valued separately
A business that pays no rent because the owner holds the building shows inflated earnings. A business that pays an above-market rent to the owner's holding company shows depressed earnings. In both cases the valuation is wrong until a market rent is charged. The property, meanwhile, has its own value based on location, zoning, condition and what comparable properties sell for, and that value exists whether or not the business survives. Buyers, lenders and tax authorities treat them differently, and so should your deal.
Sell together, or separately
Selling business and property together produces the simplest transaction and the largest single cheque, but it narrows the buyer pool to those who can finance both. Selling the business and keeping the property turns you into a landlord with a long-term tenant you know, which many retiring owners prefer for income. Selling the property to an investor and leasing it back, then selling the business, can release capital and widen the buyer pool. Each route has different tax consequences for your CPA to assess.
Lease terms are business value
When the property is held separately, the lease is the single document that most affects what the business is worth. A short remaining term, no renewal options, a landlord who can refuse assignment or a rent that resets to market with no cap will all reduce what a buyer will pay or whether a lender will finance. Before you sell, or before you buy, the lease needs to be long enough, assignable and predictable. We negotiate those terms with you and your lawyer.
Industries where we run this most
Questions about this service
Do you sell the real estate?
No. Property sales are handled by licensed realtors, and property law by your lawyer. We value and sell the business, structure the overall transaction and coordinate with the property professionals so the two parts close together.
How is the price split between business and property?
The business is valued on normalised earnings after a market rent. The property is appraised independently. The allocation matters for tax and financing on both sides, so your CPA and the buyer's lender will care.
Should I keep the building and sell the business?
Many owners do, because the rent provides retirement income. It also keeps you tied to one tenant. The decision depends on your finances, your appetite for being a landlord and the tax consequences.
Can a buyer finance both business and property?
Lenders typically finance the property as a commercial mortgage and the business separately, each on its own terms. Buyers who understand this early structure their offer accordingly. We help prepare the financing package for both parts.
Start with a confidential conversation.
Tell Ali where the business is and what you want to happen next. You leave with a straight read on value, timing and the two or three moves that matter, whether or not we work together.