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options for business purchase

Can you use an option like a real estate option to purchase a business or is it not feasable.

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Answers (2)
Steven St
World Business Partners, Inc
Los Angeles County, CA

This is VERY tricky. The main reason why this WON'T work is because real estate values are usually very stable. But if a Seller let's you buy their business with an option, what's to say you won't buy it and run it into the ground. When buying a business the buyer usually does worse in the first few years that the previous Seller did (even though the Buyer usually had high hopes of doing everything better).

There is no benefit that I can think of letting a Buyer come in and buy a business with an option (unless it is a short term option and the Buyer has no right to the business until after the option has been exercised which is different then what I think you're talking about.).

Either way, it's a hard sale to get a Seller to see the benefits of this type of arrangement.

Apr 25, 2009
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The BAF Group LLC
MD

If you have a willing Buyer, and a willing Seller, there is no reason why it cannot be done.

Apr 19, 2009

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