Hiring Around Critical Certifications – Dealbreaker or Solvable Risk?

July 15, 2025

by a searcher from Harvard University - Harvard Business School in Bellevue, WA, USA

Curious if anyone here has experience acquiring businesses that require a specific certification to continue operations. For example, a Professional Engineer (PE) license or similar credential that is currently held by the owner or another key individual. Even if you can hire someone with the right credentials post-close, how do you feel about the materiality of the key person risk? Is this a dealbreaker? Or, is this a solvable issue with the right employment agreements and succession planning?

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Reply by a searcher
from State University of New York at Binghamton in Boston Metropolitan Area, USA

In manufacturing industry it is very common and necessary to maintain list of certifications to be able to design, manufacture and sell locally or internationally. It depends on what product or services your company is producing. Employment agreement can solve this problem, but it is advised to be in touch with independent consultants who would be your fall back option. Also, you can train your other employees to understand and manage the related documents at the least. I have encountered a similar situation when I was requested to support a quality audit, even though I was part of product engineering team. Let me know if I can be of any help

Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA

I agree with Sean above. Not only is it important for you to be sure you can maintain the property licensing post-closing, but it is going to be equally important for your lender. Usually we find the more pathways you have to be sure you can maintain the licensing, whether through key employees, the seller retaining ownership, your ability to get licensed, or bringing on a partner that can carry the license, the better off you are going to be. If the business takes very technical expertise to get licensed or to manage the business, you are going to need the right person in that role post-closing. We have helped many clients figure out how to maintain licensing with acquisitions from a lending perspective. If you need assistance you can reach me here or directly at redacted

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