If 2026 is the year you plan to exit your business, and you own the shop, industrial unit or office space it operates from, preparation for a transaction of this scale is everything. And the first step is understanding what really drives the transaction, according to Adelaide-based Simon Winter, Proprietor, Raine & Horne Commercial and Business Sales.

“In those transactions involving a business and an attached property, the business is often the engine of the sale, even when the commercial property is worth far more,” Simon explains.

“Buyers typically spend months analysing whether they want the business. Once that decision is made, then they consider the commercial location where the business operates,” Simon explains.

With that in mind, here are the key resolutions owners can put in place now to help facilitate the sale of a business and property in 2026.

Resolution 1: Sell the business first to unlock the property sale

Even if the property is worth more, buyers decide first on the business, Simon notes.

“All the judgment and decision-making are about whether they want the business,” Simon says. “Once that’s a yes, they’ll then consider the property’s value.

“This is why, in transactions involving a business and its property, the business is presented first and the property later in the sales process.”

Resolution 2: Get your financials fully up to date

One of the biggest mistakes vendors make is providing incomplete or inconsistent financial information to a business broker when they decide to sell. “It’s difficult when people give us trading results to the middle of the month,” Simon says. “Always provide figures to the end of a month.”

He continues, “We want end-of-month data because sales are usually entered daily, but expenses often aren’t posted until month-end. Mid-month numbers can artificially inflate profit and raise red flags with buyers.”

Before going to market, Simon advises vendors to be able to provide the following information to facilitate a sale:

• Up-to-date trading results for the business
• Clean interim financials
• Recent and completed tax returns.
• Consistent month-end reporting

Resolution 3: Make sure your lease is in order

Even when the buyer is purchasing both the business and the property, any existing leases still matter.

“Often the property is owned separately from the business, and sometimes in a self-managed super fund. Where the property and business are owned separately but still within the family structure and there is no lease the sale will not satisfy the ‘Going Concern Requirements’ and will become subject to GST. Without a lease the buyer needs to find and extra 10% to complete the transaction.

Simon’s advice is that “even a simple lease will suffice but it needs to be capable of being assigned to a purchaser at settlement”.

Resolution 4: Get a market-based business valuation

One of the most challenging moments for vendors is discovering their business isn’t worth what they’ve been told. Simon explains, “The thing that troubles us the most is people taking advice from others who don’t understand business valuations.

While accountants are excellent at calculating business returns, Simon notes they often struggle to assess risk, which is what truly drives business value. “When you want to know what your house is worth, you don’t ask a builder. You ask someone who understands market dynamics, such as a real estate agent.”

Simon explains that business brokers assess value by talking to business owners and by evaluating income predictability (how stable the revenue is), customer loyalty, operational risk, the business's dependence on the current owner, and market conditions and buyer behaviour.

Resolution 5: Reduce key person risk

Key person risk refers to the risk that the business’s performance, revenue, client relationships, or expertise is overly reliant on a key person – often the owner. The higher this risk, the lower the business is typically valued because buyers worry the income won’t transfer smoothly when the owner exits.

Key questions buyers ask include:

• How many hours does the owner work?
• Do they take a wage or drawings?
• Are family members involved?
• Is the business reliant on one individual?

To avoid key-person risk impacting the sale of a business, Simon recommends that owners start transitioning systems, staff, and other responsibilities away from them now so the business can stand on its own.

Resolution 6: Presenting the commercial property

While the business is a key component of a business-land sale, the commercial property plays a significant supporting role. “Buyers spend months analysing the business, often turning to the property only late in the process," according to Simon.

“In commercial sales, the focus stays firmly on the business,” he explains. “By the time a decision is made, buyers will often say, ‘We’ll take the property too.’”

That said, presentation still matters. “Having the property well maintained and presented helps remove friction from the transaction, even if it carries less weight than in residential sales,” Simon advises.

If you want expert support selling your business or commercial property in 2026, call Raine & Horne Business Sales SA today on 08 8172 1266. For commercial property sales and leasing advice, contact your local Raine & Horne Commercial agent now.