A strong valuation will come from a knowledge of the store’s current real estate, licensing, and inventory combined with an understanding of its financial health and competitors’ pricing. 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. A liquor store can be one of the most attractive prospects for those who are seeking to enter the world of entrepreneurialism. 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. The best way to determine the true business value is to use all of the above factors and valuation styles together to form a more complete picture of the liquor store’s true market value. Warehouse: Liquor stores including inventory storage warehouses can save business owners anywhere between 5 to 8 percent through wholesale discounts. You’re a normal, red-blooded business buyer, right? However, considering a liquor store valuation can be quite a difficult proposition. Before a business like a liquor store can be sold, it needs an appropriate value. So it stands to reason that you’ve already been looking at listings of liquor stores for sale. Link to Article Index Page . Also, owning a large warehouse with inventory creates more capital raising options in the future. How To Value A Liquor Store Business. The Small Business Administration estimates that the rule of thumb valuation method places the value of a liquor store is 40 to 50 percent of the store's annual revenues. Traditionally they are seen as purveyors of “essentials,” with good turnover and reasonable margins.

With a large storage space, businesses can buy in bulk and take advantage of vendor discounts. By Richard Parker: President of The Resource Center for Buying a Liquor Store™ and author of How To Buy A Good Liquor Store At A Great Price©.