How easily your business — its customers, operations, contracts, and relationships — can move to a new owner.
Transferability is the measure of how cleanly a business can change hands. It cuts across customer relationships (do customers stay with the business or follow the owner?), operational processes (are they documented, or just in the owner's head?), contracts (do they automatically transfer, or require renegotiation?), key employees (will they stay through the transition?), and intangible assets like brand and reputation (do they transfer with the entity?). High transferability means the business survives the change of ownership without major disruption. Low transferability means the buyer is buying something fragile that may not be the same business 90 days after closing.
Transferability is one of the things buyers test repeatedly during diligence — and one of the things they discount aggressively if they have any doubt.
Buyers ask one underlying question — what's the business worth without the seller in it?