How to Value a Liquor Store for Sale

Before a business like a liquor store can be sold, it needs an appropriate value. This allows the owner to sell the store for a fair price and ensures that the store owner does not lose money during the sale process. There are many factors that go into valuing a liquor store, such as the location of the store and the size of the store, so each liquor store will have different values.

Determine the value of the business assets. Business assets are items like computers or property that go with the business. While assets can add up, they are typically a minor part of the business. A business heavy in assets that does not make much money is worth less than a business with few assets that brings in plenty of customers. Liquor is the main asset in a liquor store. The value of the liquor is mainly determined by the location and the customer base and is potentially valuable in the right location.

Look at the supply and demand of liquor in the area. A location with high demand will usually do well, while an area with low demand will fail. The customer base is a major factor in supply and demand at a liquor store. For example, a liquor store whose main customers are bar owners purchasing for their business might have a higher demand for liquor than stores that cater to locals.

Research current market sales of similar liquor businesses. Sales show the current market value for the business. While the sale of a business is not the most common event, if there is another sale of a liquor store within the last six months or so, this serves as a good comparison for the current market value of the business.

Consider personal needs. When valuing a business with the intent to sell due to personal emergencies or similar situations, the sales price will often drop below the actual value. This ensures a buyer will remain interested in the purchase of the business. Consider the time available to make the sale and think of the minimum price point available for the sale.

Look at the potential buyer. The buyer is part of the considerations for selling a liquor store because their experience or inexperience can dictate the amount of funding available to the buyer. A buyer that owns another successful liquor store might pay more because they know how to run the store and already have a successful business, so funding in the form of business loans is easier. A buyer that is new to selling liquor might not get as much funding due to the higher risk.

Get an appraisal. This is a professional opinion about the value of the property. Always factor the property into the price of the liquor store. Add all of the factors together to come up with a fair price for the value of the property, business and assets.

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