Most business owners enjoy one or more aspects of running their business; product development, sales, financial management or operations. Rare is the business owner who enjoys the rules, regulations and paperwork required to maintain a business. Licenses and Permits are a “necessary evil” of running a business.
Permits are often used by government entities to create barriers to entry for particular industries to insure the safety and competence of those operating in these business lines. Many permits can add value to the business as they protect the amount of competition a businesses faces (IE liquor store). The challenge for a business owner is keeping up with the constant change in regulation, regulatory agencies and responsibilities within their industry.
We strongly encourage business owners to work with their advisors to insure that they are up to date on all licenses and permits to enable them to avoid surprises and potential penalties whether or not they are intending to sell their business.
Buyers will evaluate every aspect of your business from vehicle registrations to nuclear fuel permits to insure that the business is properly permitted to operate in each of the jurisdictions the owner indicates the business conducts commerce. Failure to adequately provide permits calls the owner’s integrity into question at least and could compromise the entire transaction at worst.
If you are interested in learning other ways to increase the value of your business, The Art Of Business Value Enhancement is a Must-Read! Click here for more information.