Landlord delaying closing

April 11, 2025

by a searcher from Southern Polytechnic State Univerisity in Clarkesville, GA 30523, USA

Trying to close on a business that has 2 locations. Both landlords are currently delaying closing. Anything I can do to get closed short of getting the blessing from the landlords?

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Reply by an intermediary
from Clemson University in Raleigh, NC, USA

Unfortunately many landlords, especially national players view a change of ownership as an opportunity to use their leverage to improve their positions financially. I often see landlords requiring that the seller remain as guarantor and increase lease rates as they know the SBA requires a new aggregate 10 year term. On occassion I've had to play 'hard ball' and state things like "The buyer really doesn't want to have to relocate the business", but if not near end of term for the seller that carries no real weight.

Reply by a searcher
from Ivey Business School at Western University in Toronto, ON, Canada

You can start to negotiate reps and dmgs on LL issues. Most sellers suddenly become much more motivated when you start shifting risk to their books.

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