I'm representing an investor that coming in all cash purchasing a fruit /farmers market stand 10,000 sf built on 1.5 acre tract which includes the improvements and land together which as been in business for 8years. Purchase contracted has been executed, 30 day due diligence, seller will sign 10year lease with an option to renew for another 5years. I'm currently drafting the lease, getting appraisal, inspection, done asap. I requesting to see the last 5years tax return and p/l statement for the farmers produce market business. What else should i find out about this business financials, what determines if i need to implement a personal guarantee on the LLC or personal. What else would you suggest within this 30day contingency i need to find out. Any additional advice, suggestions, or comments will be respected.

But this isn't really the sale of a business . . . . only the sale of the underlying land (and improvements?) and a commitment to lease it back and continue to operate the business just as before; but now as a tenant/lessee instead of as an Owner.

The Seller is just using this mechanism as a source of working capital that can be used for another purpose to expand the business, hiring labor . . . . or maybe just spent.

". . . Thing that got me is would you typically ask the lessee for tax returns and P&l's? . . ."

Thank you all for the insights. I want to confirm that the seller looking to sell the building and land and stay back to operate his family produce market. At this point they are dragging their feet on releasing their previous tax returns and p/L statements for the previous 5years. We are trying to find out if the business has been profiting enough where they will be able to afford the monthly rent and still have enough earnings to carry on with the business perform and honor the lease for 10years. "Do they have enough skin in the game?" is poking out at us. My buyers would still be okay, if the seller becomes a tenant and bails out after 5 years. My buyers is looking at the this purchase more of a "land" acquisition angle. The exit strategy of my buyers for this piece would be to develop in to retail strip, alternative commercial use, or sell of the land after 10years or when the tenant leaves. The only thing we are afraid of is if the seller/tenant bails out on the lease within six months. We've asked the seller if they will continue to stay and perform the lease for 10year. A lease will not guarantee for them from splitting out early. How do you know the seller true intentions in this case wanting to become the single tenant for a complete 10years? They even countered back from the letter of intent asking for an option to renew for another 5years after the initial 10year term. Sounds good doesn't it. It would be better a better deal if the building was a commercial grade constructed, but in this case is a metal shingle wood frame farmers stand 10k sf with, that i can only see it as a seasonal tenant selling xmas trees, fireworks, or live fresh seafood. I'm currently not wasting my time right now drafting any lease, inspections, or appraisal until we see if the business as been profitable upwards annually. Would making the seller sign a personal guarantee make them have more to lose if they break or terminate the lease early? i haven't had any experience with a personal guarantee or know how far extent that can be utilize in court. Thanks for any further non legal advice.