Liquor & Convenience Store Brokers
Liquor Store Brokers specialize in the sale of liquor stores, convenience stores, mini-markets and variations of these types of retail businesses. Liquor Stores are highly desirable business opportunities. Moreover, California liquor licenses are limited and highly valuable. The market for this type of business is very competitive due to high profitability and relative ease of operation.
What Do Liquor Store Brokers Do?
Liquor Store Brokers perform valuations usually based on the profitability of the business using a valuation method known as Seller’s Discretionary Earnings (SDE). If the business is not profitable, or there’s a distress sale, the valuation method used is Asset-Based valuation which determines the price range based on the fair-market value of the business assets. In addition to business valuations, Liquor Store Brokers will also value the commercial property involved if the building is also for sale as part of the business opportunity.
Liquor Store Brokers will obtain all necessary business and financial documents to properly package the business for sale. The more challenging aspects of selling liquor stores in California is securing approval from the Alcohol Beverage Control (ABC). Prospective buyers must complete and pass a background check in order to secure the alcohol license transfer. The requirements limit the types of buyers to individuals with no criminal records. Liquor Store Brokers will qualify buyers to assure that they will meet the stringent ABC qualification requirements.
Additionally, Liquor Store Brokers will assure that the business will be able to transfer through the California State Department Tax & Fee Administration. If there is an issue regarding a liquor store paying sufficient sales tax, the State will prevent the sale until back taxes are paid.
In addition to clearing governmental hurdles for a successful liquor store sale, a liquor store broker will also manage the inventory component of the sale. As you can imagine, the inventory for a liquor store is rather extensive and highly valuable. There is little room for error in valuing the inventory at the moment of the business transfer since the value is adjusted at the time escrow closes. Typically, the liquor store broker will hire inventory specialists to quantify and value the inventory at the time of sale which is then sold in the aggregate as part of the business sale.
Mission Peak Brokers sell businesses throughout the Bay Area. While we have experience selling a variety of Bay Area businesses, we specialize in Gas Stations, Liquor Stores or Convenience Stores and Restaurant/Bars. We sell businesses with commercial real estate as well.
As the Bay Area’s most successful Liquor Store Brokers, Mission Peak Brokers attract more qualified buyers to your business than other brokerages. We have several hundred pre-qualified buyers looking for a liquor stores to buy. We reach thousands more through our website, top business-for-sale websites, commercial real estate listing sites, social media and our professional associations. We carefully pre-qualify our buyers including requiring confidentiality agreements before obtaining information on the business.
Mission Peak Brokers is also unique as a Bay Area business brokerage. We are one of the only brokerages in the area that provides business, commercial real estate and loan brokering (commercial real estate loans and SBA loans) for a comprehensive level of service to our clients. Our closing ratio for loans is 99% which helps us effectively guide transactions to successful outcomes.
Given our extensive experience and success rate (over $270,000,000 sold), we welcome the opportunity to use our expertise to help you achieve your entrepreneurial goals. Check out our ratings. Contact us today to help build your dreams tomorrow.