What happens if a licence needed to run the business simply can't be transferred at all?

Some licences and permits are simply not transferable under any circumstances — they're issued to a specific licensed individual or entity based on qualifications, background checks, or other criteria that don't carry over to a new owner, meaning your buyer would need to obtain an entirely fresh licence in their own right rather than inheriting yours in any form. This is common where licensing is tied closely to personal qualifications or professional certification rather than to the business as a going concern.

This can materially affect deal timing and risk allocation: if the buyer's own licence application isn't approved before your target closing date, the business may not be able to legally operate the moment ownership changes, even if every other part of the sale has gone smoothly. Buyers and sellers sometimes address this with a delayed closing, an interim operating arrangement, or a closing condition tied specifically to the buyer's own licence being approved.

Because a non-transferable licence can be the single biggest risk in an otherwise straightforward sale, identify this early and build your timeline and purchase agreement around it. A Treadstone business lawyer can help structure the deal to manage this risk.