Contractor's licenses for service business without requisite experience

by a searcher from University of California, Los Angeles - UCLA Anderson School of Management

4 years ago

I'm a self-funded searcher interested in acquiring a service business (HVAC, landscaping, plumbing, etc), but state licensing boards require that the owner of these types of businesses obtain an appropriate contractor's license. In CA, many of these require up to 4 years of practical experience in the given field (for many, a bachelor's degree will enable you to waive 3 of these experience years). I'm wondering if/how searchers acquiring service businesses have navigated these licensing issues?

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15 comments

searcher from New York University - Leonard N. Stern School of Business

Thanks for sharing. You mention a non-compete when talking about the manager, can you elaborate on what happened in your case, and why this was a critical step or misstep?

11 months ago | like reply | 0 likes

searcher from University of Virginia-Darden - Darden School of Business

echoing Kelly's comment, it's state by state. Generally speaking, Electrical takes the longest to acquire, followed by HVAC and plumbing. Most states don't require mgmt to have licenses for landscaping, but any individuals operating pesticides will need to have appropriate licenses. The owner. doesn't have to have the license usually, at least 1-2 employees, but it's better for the owner to have it in the end for protection. Check what's required by state - the 4 year HVAC license is probably an advanced one if I had to guess. I hope this helps...!

11 months ago | like reply | 1 like

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