I’ve actually been through this. We bought a business with a plan to acquire a separate property and relocate within the first year. The move itself went smoothly (we used a reasonably priced moving company) and the bank accepted our rent calculations because the new facility was cheaper on a per-square-foot basis and gave us room to grow in a historically high growth business. What surprised us was the pace of that growth. It came in slower than we expected, and the larger space ended up consuming a bigger share of EBITDA than we had modeled. It didn’t sink the business, but it did tighten cash flow for the first few years until we finally grew into the footprint.

Katlyn - your biggest hurdle is the regulatory approvals. You need to get a better sense of the amount of time an agency may require to approve the change in location, whether inspections are required, license and permitting, etc. Ordinarily, these transfers would commence immediately after the purchase agreement is signed, and closing would be subject to receiving the approvals (conditions to close). I'm sure the seller knows this is a big deal, and they may have a line of communication open with the regulators already (don't count on that, as licensing and regulatory approvals are typically buyer responsibilities). There is a process for getting approvals, and typically, I would not say that they are overly slow, however, the shutdown could have created a backlog. Ascertaining this element of the process and estimating timelines for approval should be done by transactional counsel early - during LOI, so that in the Purchase Agreement, the timelines can be appropriately drafted and extensions prepared. Of course, if the timelines are not feasible, then the transaction may potentially be a lost cause. Let me know if I can be of assistance. Feel free to DM me. Vish