Definition
Transferability is the ability to move a business’s economic capabilities into the buyer’s ownership and operating model. It includes customer retention, people and know-how, repeatable workflows, decision rights, contracts and consents, usable data and IP, licenses, access, and required capital. Legal ownership can transfer while a critical economic capability does not. Test normal operations and exceptions under the proposed successor and transition plan.
What it means for you
Prepare evidence of what transfers, what needs permission or replacement, and who owns the remaining handover. A manual, retention agreement, or share purchase alone is incomplete proof.
The buyer’s lens
Can the buyer keep producing the underwritten cash flow with the actual perimeter and transition terms? Connect gaps to diligence, price, protection, closing conditions, and Day 1 ownership.