Tips to Selling a Convenience Store
Selling a convenience store is no easy task. It is a complicated process that is more involved than other types of retail business sales.
Convenience store owners have a tremendous market advantage. Convenience stores are responsible for more than $680 billion in annual sales and this number is expected to grow.
Moreover, convenience stores have proven to be resilient to recession revealing this type of business investment as evergreen and stable. This is good news for convenience stores owners looking to sell their business. If you are a convenience store seller, you are now in a favorable negotiating position due to the high buyer demand.
Here are 4 tips to selling a convenience store.
Selling a convenience store: Preparation
Preparation also means assuring that your store is presentable. It should be neat and clean. The inventory should be organized and easy to access. The exterior of the store should be well maintained, well-lit and with clear signage.
If there are any repairs to be done, be sure to address them before you market your business for sale. Do not give buyers a reason to dismiss your business opportunity.
Every sale needs preparation because there will be numerous buyer inquiries. This means that you’ll need to provide documentation of your convenience store’s financial performance and why it’s a good investment for the buyer.
Selling a convenience store: Valuation
Convenience store buyers will want to know: How much is this store earning? How much can I expect to make if I buy this store? What will my costs be? Is this store worth the list price?
Balance sheets, income statements, tax returns, cash flow statements, and tax returns are just a few examples of documents that you should have prepared and ready to go for your liquor store broker to properly value, prepare your business for sale and market your business.
Additionally, you should organize all relevant business records such as lease, business entity documents, licenses, insurance records, employee information, inventory records, etc. are just to name a few.
For a professional valuation, meet with one of our business brokers. Let us examine your financial statements and search for any earnings that can be added to your net income to arrive at the right value.
We have access to comparable data, so we can see what businesses are offering in the marketplace. Also, how long they remain on the market before selling. The following package should be assembled before you meet with us:
- Copy your lease
- Statements of Profit and Loss for the last three years
- Tax Returns for the Past Three Years
- List of furniture, fixtures and equipment
We can show a buyer why your company is worth the price and help you prepare your business to sell. We protect your financial information and keep it confidential. It is not released to any buyer until we have reached terms on a contract.
Selling a convenience store: Marketing
How good is your marketing? Do you have systems and procedures in place for digital marketing, advertising, promotions, loyalty clubs, etc.
Showing buyers that you have effective marketing in place is very enticing which increases buyer interest and the value of the business.
Selling a convenience store: Business Brokers
Many sellers work with liquor store brokers to get their expert advice on how to sell a business. Brokers are a great option for those who are new to selling businesses. They can help you determine a fair sale price and make your business attractive to potential buyers.
Why should I work with a liquor store broker to help me sell my convenience store?
Cost of marketing your convenience store for sale
Marketing is expensive and time consuming. All our convenience store listings are promoted across all major business opportunity listing websites, our website, email marketing and on social media. Our marketing system reaches convenience store buyers who are part of email marketing list.
All marketing efforts are free of charge. We don’t get paid unless your convenience store sells.
Time involved in selling your convenience store
We do the work. We organize all showings. We provide you with buyer feedback to help you better optimize your business opportunity sale and increase your chances for a highly favorable outcome.
Our specialized market knowledge
You know your business best but an experienced liquor store broker knows the marketplace. Our liquor store brokers have specialized market knowledge regarding liquor store and convenience store sales in the state of California given our extensive number of successful sales and years of experience.
Our liquor store business brokers are skilled in assessing the potential financial opportunities your store presents to potential buyers. They will accurately price your business and properly package the business.
Confidentiality & Buyer Qualifications
Before we share any information about your restaurant, our buyers must be carefully screened. We protect the confidentiality of each transaction. Every buyer signs a Non-Disclosure Agreement (NDA) before receiving any information regarding your business.
We further qualify the buyer by assuring that they are financially qualified to buy your store and meet any financing requirements.
Our brokering services will help you get from the initial offer to closing during your convenience store business sale transaction. We know the ins and outs of a liquor sale including financing, escrow, liquor licenses and business transfers.
If you are looking to sell your convenience store, trust our expertise and experience for ensuring your best business sale outcome. Contact us today for your complimentary business valuation.