Fri. Jul 19th, 2024

How To Sell a Business With a Liquor License

When you sell a business as a whole entity, it’s not necessarily a single transaction even if it sounds like it should be. Often the business has assets that need to transfer ownership with the company, so even if there is not an additional cash transaction, escrow and retitling become necessary. When it comes to certain business assets, the same holds true. That’s why you need to know who to call for liquor license transfers California.

Stock Sale or Asset Sale?

The first step to take is to decide if you’re selling the entire business, including branding and operations, or if you’re just selling its assets. Often, when a company moves to a new location and expands, often its old equipment is sold alongside the property. Sometimes this includes the liquor license but not always. After you make the choice, a broker listing is the next step, to get buyers in the door.

Presale Due Diligence

When you’re approached by a serious buyer, the due diligence checklist is their way of getting all the information needed to make an educated decision about buying the company. That includes its articles of incorporation and bylaws where applicable, including any partner meeting minutes. It also includes the financials, disclosure of assets, employee benefits, and all other relevant financial and fiduciary commitments.

Closing the Deal

Once you and a buyer come to terms, the next step is to divest yourself of the business and the assets, which is when you’re likely to need escrow services for liquor license transfers California, as well as titling services and more. Often, business owners choose to work with a legal representative just to get the guidance they need at each step. This helps them ensure they’re managing risks well, as does the use of the appropriate expert services whenever an asset transfer occurs.