What do you do when your Oklahoma business is worth less alive than the dirt it sits on?
That is not a joke. I see it more than people think.
An owner builds a business for 20 or 30 years. But the land under it has gone up so much in value that the real estate is worth more than the cash flow of the company sitting on it.
Do you sell the real estate and shut the doors? Or do you separate the two and sell both?
Here is the hard truth. Selling a business is already difficult. Nationally, only about 7–30% of privately held businesses sell. The rest quietly close or fade out. When you add real estate into the mix, the complexity doubles.
Let’s break this down in simple terms.
The real estate is worth $2.5 million.
The business cash flow supports a $1.0 million valuation based on EBITDA.
A developer knocks on your door and offers $2.5 million for the dirt.
But what happens to your employees?
What happens to long-time customers?
What happens to your legacy?
You have options most owners never explore.
Option 1: Sell the real estate. Lease it back.
You can sell the property to an investor and sign a long-term lease. You pull cash out. The buyer gets a stable tenant. Your business keeps operating. Employees keep their jobs. Customers never know.
Option 2: Split the assets.
Sell the business to an operator. Sell the property to an investor. Or require the buyer to sign a long-term lease. This creates two bites of the apple. Many SBA deals depend on this structure because goodwill over $250,000 requires third-party appraisal, and collateral rules get tight. Structure matters.
Option 3: Redevelop and relocate.
Sell the dirt at a premium. Move the operation to a lower-cost facility. Rebuild equity in a new property while monetizing the old one.
Option 4: Take the easy road.
Sell the property. Close the business. Walk away.
There is nothing wrong with any of my 4 options.
Here is the danger. Most owners think, “I’ll just list it and see what happens.”
Selling a business is a long and complex process. You are dealing with valuation, recast financials, SBA underwriting, third-party appraisals, allocation of purchase price, due diligence, lease assignments, attorneys, CPAs, and lenders. Time kills deals. Surprises kill deals.
If the business is even slightly weak, buyers will push prices down.
If the add-backs are not reasonable, SBA will cut them.
If collateral is thin, the buyer must pledge outside assets.
If goodwill is too high, an appraisal can sink the loan.
This is why most self-led sales fall apart.
CPAs and other centers of influences, this is where you matter. Many of your clients do not understand that value is based on cash flow. They also do not understand financing. Banks lend on equipment, inventory, and receivables. They do not lend on goodwill without structure.
Are you selling dirt? Or are you selling a business and protecting a legacy?
There is no one-size-fits-all answer. But doing nothing because the decision feels heavy is the worst option of all. If this makes you think differently, share it with another owner.