Surely on more than one occasion you have gone for a leisurely stroll down the street and you have seen signs on some businesses where you can read “For Lease”. Usually, this happens in premises that operate under some kind of commercial activity, whether it is a bar, a restaurant, a car repair shop or any other business.
It is important to know that a sale and a transfer are by no means synonymous. In fact, they imply big differences, even with the activity that must be carried out in a premises that has the sign “for lease”.
We explain the differences and the implications of each below.
Is a sale the same as a transfer?
In a very simplified way, we can say that in the form of a transfer, what we are doing is handing over the right to operate a business to the person who will pay an agreed price for the transfer.
On the other hand, when we talk about sale, we refer to the effective change of ownership of a property in which a specific business is located.
So, what exactly is the transfer of a business and what does it entail?
When a business transfer takes place, what is signed is the assignment of the lease of a business or premises, with all the commercial assets that are in it and the use of the brand name, in exchange for an agreed price.
In this case, the commercial assets of a restaurant, for example, are understood to be the refrigerators, kitchens, kitchen utensils, table …. and other furniture or machinery present in the restaurant.
In order to set this transfer price, it is necessary to take into account different variables. Among them, the age of the business, its current state, having all the permits and licences in order and up to date, as well as knowing the turnover data of the business or the client portfolio, depending on the activity.
In the event that the parties do not reach an agreement, a professional can carry out an in-depth study and collaborate on the price of the transfer.
When the transfer takes place, the person who acquires it is to continue to maintain, therefore, the current business.
How does this differ from the sale of a business?
As we have seen, when we talk about a transfer, we are referring to the transfer of the right to operate the business to a third party. In contrast, the sale of a business means the change of ownership of the property where the business is located.
They are, to all intents and purposes, two different situations. One refers to the use and operation of a business and the other to the sale of the real estate.
Generally, through the sale, the new owner seeks to obtain a return in the form of monthly rent.