Buying the Business and Building? Separate the Closing Obligations

By Don McClain | Founder & Principal, Medro Advisors An acquisition involving an operating business and its commercial property may involve separate payment terms, entities and closing documents. Reconcile business working-capital adjustments with the property funds flow without treating a business purchase formula as a real estate requirement. Identify who owes each amount, when it is due and which funds can cover it. A later seller settlement should not be assumed available for a property payment due at closing. Transaction-specific professional review is required. No financing or closing outcome is guaranteed.