What to look out for when buying a business with a liquor license.
When buying a business that has a liquor license, it needs the special skills of a Business Broker that has extensive knowledge of the liquor law. The liquor law is unforgiving and an invalid or defective liquor license can mean closure of the business.
When buying a business that is dependent on a valid liquor license it must be a condition president in the sales contract that the seller hands over a valid and paid up liquor license. This is difficult at times to determine if you don`t have liquor license experience. An application for a new liquor license can take months to be approved.
Before buying a licensed business, the buyer should consult a reputable liquor license consultant and request the consultant to inspect the documents and the premises. Some businesses has evolved over years with the result that they operate in contravention of the liquor law, and face the danger of closure by the crime prevention team.
The transfer of the liquor license must be handled by a competent consultant. If this is not so, the business might be prevented to trade in liquor.
The seller faces a dilemma when selling a licensed business on terms. The liquor license must be protected should the buyer default and if the seller is forced to reposes the business to minimize his damage. If the buyer trades on the sellers liquor license, the business will be closed by the authorities or the seller may be prosecuted for transgressions on the premises even though he is not in attendance.
There are fraudulent liquor licenses and great care must be taken to ensure that the business is legally licensed to sell alcohol.
For More information on liquor licensing visit www.liquorlicensing.co.za
And for more information on Selling you business
Please visit www.businessexperts.co.za
Or phone Frik Liebenberg 082 556 8368