Glossary · People and paperwork
Licensee
In short
The party that receives permission from a licensor to use intellectual property or a specific right, typically in exchange for a fee or royalty.
What it means in a deal
If the business you're acquiring is a licensee, verify the terms of its license agreement. Your ability to continue operating as a licensee is fundamental to the business's value. Ensure the license is assignable or the licensor will issue a new one.
Related terms
Common questions about Licensee
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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