What is landlord approval? And why do I need it?

So you want to buy a hospitality business? You’ve got the cash, You’ve put in an offer and the seller has accepted. Done deal right?

Wrong……

Many first-time hospitality business buyers have not yet encountered one of the most vital steps in business acquisitions…… Landlord approval.

Any business for sale comes with on ongoing lease agreement. Without the lease.. well… there is no business to sell.

So when it comes time to reassign the lease to the new buyer… That’s you, we have to get through the ultimate gate-keeper… The Landlord.

“Piece of cake”, I hear you say, “I’ve been in Hospitality for 20 years.”

Ok great.  Do you have a formal qualification? A portfolio of management experience? Have you owned and operated before?

Gate keepers are looking for a sure bet on experience in both business and hospitality. You may have been the fastest line cook for 20 years, but can you budget and manage wage costs?

Landlords won’t dig for information, or assume you have this experience based on a one-page resume. You will need to be prepared!!

For buyers, landlord approval is only obtained once a contract of sale has been signed. This means you have potentially invested alot of time and plenty of money with accountants and solicitors, only to be rejected at the 11th hour.

If you are considering buying a business now or in the distant future schedule a free consult with one of our Hospo Specialists to assist you in preparing for landlord approval ahead of time.