What A 'Good Deal' Looks Like
Connecting Qualified Buyers & Sellers
There are many options and strategies available when buying or selling a California liquor license. Whether you’re wrapping up a project or starting something new, we can help.
How It Works
Liquor licenses in California are limited and issued according to population per capita by county. Every year, the Department of Alcohol and Beverage Control looks at the increase in population and occasionally releases new licenses in a county- wide lottery, but not for every county in California.
Once a restaurant, bar or hotel no longer needs their license, they must surrender it back to the ABC and within one year they must either let ABC know they are going to use it somewhere else or they must sell it.
Key Principles When Working with a License Broker
- Trust. All relationships are built on trust with both people and the process. We work hard to earn the trust of every single client.
- Transparency. We always share the most up to date information we have with our clients. We play it straight and you’ll always know what we know.
- Technology. We maintain a proprietary statewide database, updated in near-real time, that correctly displays all recent license transfers in each county per the county register’s office.
- Value. Trust + Timing = Value. We will also be actively involved throughout the entire application transfer process to ensure that your filing and project go smooth and according to plan
We have an expert team of experienced license specialists (and a ton of up-to-date research and data) and know what to look for and how to negotiate fairly on behalf of both buyers and sellers.
Contact Us Today To Find Out How We Can Help!
Qualified Buyers
Time is Money
License transfers can be tedious and time consuming. One mistake can set the process back months and timing is everything.
A Qualified Buyer
Not all buyers are the same and it’s important to make sure that the buyer for your license is qualified. Here’s what to look for:
- Signed lease for the new project location.
- Building permits pulled and approved and/or construction has begun and at least 50% complete.
- New business will be ready to open in 3-6 months.
- Conditional Use Permit (CUP) secured (or in process) from local jurisdiction.
- Business entity is in good standing with the Secretary of State Strong Capitalization Table (CAP Table) that has been vetted by a CPA, real estate broker or legal counsel.
- Project team assembled and ready to go (Executive Chef, front of the house, bar manager etc,)
Qualified Sellers
Fair Market Value
Prices fluctuate on weekly/monthly basis, and we specialize in establishing fair market valuations across California on a real-time basis.
A Qualified Seller
Not all sellers are the same and it’s important to make sure that the timing and terms are determined before entering a deal. Here’s what we look for:
- License is current and up to date with the Dept of ABC (all renewals and fees paid, no ABC holds, suspensions or special provisions)
- Business entity is current with the Secretary of State
- No tax holds on the license for any of the listed partners (EDD, FTB, IRS, CDTFA)
- Seller understands the escrow process and is willing to be patient It might take time to find the right buyer and to get the best price ABC process is typically 3-6 months and the seller’s money will not be received until after final inspection and escrow closes Trusts the broker they are working with to best represent their interests and get the best fair market value for their license
Choosing the Right License Broker
Not All Brokers Are Alike
Because there is a limited supply of licenses at any one time, it’s important to choose your broker wisely.
We strongly recommend that you work with just one broker as opposed to shopping around looking for several different brokers.
When multiple brokers begin to look for licenses in the same county at the same time, this can artificially inflate the price of that license, pitting buyers against sellers and brokers against brokers.
Trust Our Process
Most often, our clients are extremely busy and don’t have the time or necessary resources at their fingertips. It’s a complicated process with lots at stake. Often there are several agencies involved to ensure a smooth and seamless transaction.
Contact us today to find out how we can help!
Greg Roden | License Consultant
(510) 926-7626
greg@licensegold.com
