Let’s Buy a Business Non Transferable Business - What are these and how to move on ASAP?
Mar 27, 2025
What happens when you discover the business you're interested in is non-transferable? The discussion dives into the challenges of businesses reliant on the owner's personal network and reputation, especially in fields like consulting and artisan crafts. Strategies for structuring deals are explored, along with the risks that both buyers and sellers face. The conversation offers insights on navigating this complex landscape and suggests ways to pivot effectively.
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What Defines Non-Transferable Business
- Non-transferable businesses depend heavily on the owner's personality, network, or goodwill.
- These businesses lack systems, making it nearly impossible to transfer value to a new owner.
Influencer's Business Example
- A TikTok influencer with 10 million followers had a business tied entirely to her presence.
- This extreme example shows creator businesses are often non-transferable because the owner is the core asset.
Structuring Non-Transferable Deals
- Structure deals with revenue sharing to align buyer and seller risks in non-transferable businesses.
- A smooth handoff from the seller to transfer contacts is crucial to retain business.