| Office | Virginia Alcoholic Beverage Control Authority (Virginia ABC) |
|---|---|
| Paperwork | A new license application from the buyer; for corporate licensees, a report of changes in officers, directors or larger shareholders |
| Timing | Start the buyer's application well before closing; corporate changes are reported within 30 days |
Watch for this: A change in non corporate ownership ends the current license automatically. The buyer cannot simply keep using the seller's license.
The License Belongs to the Owner
Virginia ABC licenses are issued to a specific owner for a specific place.
When ownership of a business that is not a corporation changes, such as the sale of the business or adding a new partner, the current license ends automatically. The buyer files a new application.
That surprises many sellers who assume the license comes with the restaurant, the way the ovens do.
Corporate Licensees
When the license is held by a corporation and the buyer purchases the stock, the same company keeps operating. Virginia ABC must still be told within 30 days about changes in officers, directors and shareholders who hold 10 percent or more.
Your attorney can tell you whether your deal works better as a stock sale or an asset sale. Licenses are one factor among many.
Plan the Timing
A buyer's application takes time, and the restaurant should not lose its alcohol sales at closing.
Start the application as soon as the purchase agreement is signed. Ask Virginia ABC about the order of steps and whether any interim arrangement fits your situation.
Many purchase agreements make the buyer's license approval a condition of closing.
What the Buyer Will Need From You
The application asks about the premises, the lease and the people involved. The buyer will need a copy of your lease, floor plans and details about seating and food sales. Have them ready to speed things up.
Records Buyers Ask About
- Any violations, notices or hearings tied to the license
- Food and beverage sales split, since some licenses depend on food sales
- Purchase records from wholesalers
- The current license and any special conditions on it
Inventory on Hand at Closing
Beer, wine and spirits on the shelf at closing need their own plan. Ask Virginia ABC and your attorney how that stock may pass to the buyer, and count it the day before closing so the price adjustment is accurate.
Local Approvals
The city may also have a say through zoning, health permits and the business license. See Virginia Beach business license when a company changes owners for that part.
Pricing a Restaurant With a License
A restaurant with steady alcohol sales and a clean record is easier to sell. Buyers still pay for profit, not the license itself.
Our page on finding a buyer for your seafood restaurant covers what drives price, and sales tax successor liability applies to every restaurant sale.
This page is general information, not tax or legal advice. Confirm current rules with Virginia ABC, your CPA or your attorney. To plan your sale, request a sale estimate.