How to transition licenses for the trades

by a searcher from Columbia University - Columbia Business School

1 year ago

Hi all, 

I'm working on a deal in Virginia that requires Class A licenses for both plumbing and electrical. VA requires you to have 5 years relevant experience to sit for the exam (I have zero). 

Currently the seller has both licenses, but they are not transferrable under state law. Another employee also has them. 

Any tips for how to transition the seller's licenses over to my NewCo? 

Some options I've heard include seller consulting agreement, keeping the OldCo as a passthrough somehow, hiring a new person with the licenses, or just doing a stock deal. Would really appreciate any tips for getting this done with minimal risk. 

Thanks!

1 like
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11 comments

searcher from Washington State University

If you're able to strike some kind of consulting agreement with a licensed individual, whether it's the seller or some third party, are there specific requirements on how involved this individual needs to be on a day-to-day basis?

For example, if you have other individuals licensed to do the day to day work but you don't want to have any of these individuals qualify as the required licensee due to the inherit risk that holds of them possibly leaving or bending you over a barrel, can you have a consultancy agreement with another licensee that is not part of the day-to-day?

1 year ago | like reply | 0 likes

searcher from Wentworth Institute of Technology

Consulting agreement and keeping them on payroll both work as solutions. When I retired from general construction, I used to sign off on projects with my license for 2 small builders on a per project basis. I have also seen others, specifically electricians, who will post on craiglslist for a retired electrician or even search the state licensing board and call people until they find someone to take them up on the offer.

1 year ago | like reply | 0 likes

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