Selling with the real estate, or the business only

This is the cleanest exit. You walk away with one check and no ongoing ties to the site.

• Bigger price, smaller buyer pool. The total is larger, so you need a buyer with more cash or a lender behind them. Regional chains and private-equity-backed groups often prefer to own the land.
• The property is valued separately by an appraiser, then added to the business value.
• Lenders look hard at the site. Expect a Phase I environmental review, and a survey and title work. Have tank records ready.

You become the landlord. Many owners like this because it keeps a monthly income and the land stays in the family.

• More buyers can afford it. Business-only deals need less cash, so more owner-operators can step in.
• The lease has to work for a lender. If your buyer uses an SBA loan, SBA rules generally require the lease term, including renewal options the buyer controls, to be at least as long as the loan term (NAGGL on SBA SOP 50 10). A short lease can stall the deal.
• Decide who pays for what. Tanks, dispensers, canopy, roof, paving and environmental testing should each have a clear owner in the lease.
• You still own the site. As the property owner you can carry environmental responsibility for it. Get your own legal advice on the lease’s environmental and insurance clauses.

If you lease, you are selling the business and your right to stay there.

• Read the assignment clause first. Most leases need the landlord’s written consent, and some let the landlord charge a fee or reset the rent.
• Check the term left. If only a few years remain, talk to your landlord about an extension before you list. More term makes the business easier to finance.
• If your fuel supplier is also your landlord, the lease and supply contract are usually tied together, and the supplier’s approval of the buyer covers both. See your supply contract when you sell.

You sell the land and building to an investor who leases it back to the operator for a long term. Owners use it to cash out the real estate while the store keeps running, or to split one large sale into two smaller ones.

Investors pay for a long, solid lease, so the rent and the operator’s strength drive the price. It can be done before a business sale or at the same closing.

When a business and its assets are sold, the price is split across land, building, equipment, inventory and goodwill. Both buyer and seller report that split to the IRS on Form 8594. How it is split can change your tax bill, so bring your CPA in before you sign a letter of intent, not after.

We can price each option side by side so you see the real numbers before you choose.