Short answer
At diligence, before the purchase agreement is signed. That is when the license inventory, change-of-control requirements, and state approval timelines can still shape the deal structure and the closing date. Brought in after signing, licensing becomes a race against a calendar it had no part in setting.
Licensing findings change deals: an asset purchase may need to become a stock purchase because the target's licenses cannot be replaced fast enough, a closing date may need to move because two states require pre-approval, an escrow may need to hold back value against an unresolved deficiency. None of that is possible once the agreement is signed.
In diligence, the licensing lane produces a concrete artifact: every license the target holds, its status and deficiencies, which states require consent before closing versus notice after, and a filing calendar that maps onto the deal timeline. Counsel owns the legal judgments; the licensing specialist owns the inventory, the filings, and the regulator follow-through. That division is why deal teams keep both in the room.
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