Licenses & Regulatory Issues When Buying a Business

Buying a business that requires licenses or operates in a regulated industry can add another layer of complexity to an acquisition.

But for searchers who understand those requirements, it can also create opportunity.

Attorneys Bill Barlow and James David Williams returned for another Acquiring Minds office hours to break down the licensing and regulatory issues buyers need to think through before closing.

They covered:

• How to identify the licenses and permits a business needs to operate
• Whether licenses are held by the company or individual employees—and whether they can be transferred
• What happens when the seller or a key employee holds a license the business depends on
• How licensing requirements can influence whether you structure the deal as an asset or stock sale
• When seller rollover equity may be necessary to keep a required license in place
• How to assess employee-retention risk and build a backup plan for critical license holders
• How to determine whether you’re the right buyer for a regulated business