Buying a liquor license, restaurant, bar or other business involving alcoholic beverage privileges can include several moving parts.

The purchase agreement may establish the economics of the transaction, but the escrow must also account for the conditions that need to be satisfied before the transaction can close and funds can be disbursed.

ABC Escrow serves as the neutral escrow holder and manages the escrow instructions, funds, documents and closing requirements for the transaction.

Liquor License Only or Complete Business Purchase?

What Buyers Should Have Ready

• Buyer entity and ownership
• Seller and business information
• Purchase price and deposit
• Liquor license being transferred
• Premises and lease arrangements
• Furniture, fixtures and equipment when applicable
• Financing or lender requirements when applicable
• Purchase agreement or agreed transaction terms
• Anticipated possession and closing timing

The escrow officer will identify what is actually needed based upon the structure of your transaction.

Your Deposit and Purchase Funds

Escrow creates a neutral place for transaction funds to be held and administered according to the written escrow instructions.

Funds are not simply handed from buyer to seller. Closing and disbursement occur according to the escrow instructions once the applicable conditions of the transaction have been satisfied.

Start Early

One of the easiest ways to create unnecessary delay is waiting too long to identify escrow requirements.

Liquor license transfers do not close overnight. Regulatory processing, tax matters, creditor issues, financing, lease requirements and missing documents can all affect timing. Opening escrow early allows the parties to identify those issues while the transaction is moving forward.