- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Liquor store- good investment?
Posted on 7/6/23 at 8:40 pm
Posted on 7/6/23 at 8:40 pm
Hey guys.
There is a local wine and liquor store is up for sale in my area.
Would you consider this a good investment? The building is leased for $2000/mo.
Here are the details-
Asking Price: $285,000
Gross Revenue: $900,000
EBITDA: $50,000
FF&E: $40,000
Inventory: $150,000
There is a local wine and liquor store is up for sale in my area.
Would you consider this a good investment? The building is leased for $2000/mo.
Here are the details-
Asking Price: $285,000
Gross Revenue: $900,000
EBITDA: $50,000
FF&E: $40,000
Inventory: $150,000
7
Posted on 7/6/23 at 9:01 pm to Random MsState Fan
Assuming inventory and FF&E are fair market value, you'll be paying 95K for the EBITA. 2X EBITDA is an attractive metric in just about any industry. If there is opportunity to cut expenses, or if current owner is running a lot of personal expenses that would cease, this could be a very attractive venture.
One recommendation I would like to offer is to require seller pay off all debt at closing or reduce cash payment by amount of debt assumption.
I strictly base this off the limited information provided so take it with a grain of salt.
One recommendation I would like to offer is to require seller pay off all debt at closing or reduce cash payment by amount of debt assumption.
I strictly base this off the limited information provided so take it with a grain of salt.
Posted on 7/6/23 at 9:09 pm to Random MsState Fan
quote:
EBITDA: $50,000
So the business breaks even give or take and the owner pays themself 50k? Did you miss a zero? That is a terrible idea given you have to be open 6 days a week and 8-10 hours.
Posted on 7/6/23 at 10:56 pm to Random MsState Fan
I wouldn’t be interested because the margins are basically non-negotiable. Maybe add some bar business, lottery sales, and cigarettes it’s still a maybe.
Posted on 7/7/23 at 6:52 pm to Random MsState Fan
I’ve thought about asking this question on here multiple times.
Why do all of these Indians open convenience stores? Do they know something we don’t? Why convenience stores? How do they learn American business so quickly and courageously?
Why do all of these Indians open convenience stores? Do they know something we don’t? Why convenience stores? How do they learn American business so quickly and courageously?
Posted on 7/7/23 at 6:59 pm to Random MsState Fan
Have you looked into all the red tape you may have to cut through to get a liquor license in your jurisdiction?
Posted on 7/7/23 at 7:16 pm to Random MsState Fan
Posted on 7/10/23 at 12:30 pm to Random MsState Fan
There are a lot of factors to think about.
But I’ve been in the industry for 13 years and sold in three states.
I’ve seen five close
But I’ve been in the industry for 13 years and sold in three states.
I’ve seen five close
Page 1 of 1
Back to top
Follow TigerDroppings for LSU Football News