License value

Definition

What the liquor license itself is worth, which in some states is a large share of the price.

Why It Matters

In a limited-license state this is often the largest single asset in the deal and it carries its own transfer process, timeline, and approval risk. Price it separately from the business, confirm it can actually transfer to you, and start the application early: the regulator's calendar does not move for a closing date. Conflating license value with goodwill is how a buyer pays a business multiple for an asset that was never earnings.