Transferring Ontario Liquor Sales Licenses: Avoid Being Cut-Off

If you are considering an M&A transaction involving an Ontario establishment that holds a Liquor Sales License (a License), don't forget to consider legally-mandated License transfer requirements. In Ontario, the sale of liquor is regulated by the Alcohol and Gaming Commission of Ontario (the AGCO) under the authority of the Liquor License Act and accompanying regulations (the Act). If the proper License transfer process is not followed you could end up with a business that is no longer allowed to sell liquor, and thereby lose an important source of revenue.

The Act requires a License to be transferred in a number of circumstances, including when:

• the licensee's business structure changes;