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If you’re considering selling a wine shop license there are a number of steps you should take long before you put the store up for sale. Selling your liquor license usually means you’re also selling your retail store business, including inventory and other assets.
Gather Financial Documents
Ask your accountant or bookkeeper for the following financial documents:
- Income statement
- Balance sheet
- Cash flow statement
- Accounts receivable and payable
- Monthly income, expense, profit records
- Bank statements
- Financial forecasts and budgets
- Inventory, asset and equipment lists
Ensure Your Wine Shop is Compliant
Check that your shop is compliant with the Liquor and Cannabis Regulation Branch (LCRB) terms and conditions of your wine store license and relevant liquor related laws. If you have any doubt, consider an operational compliance audit from a reputable liquor license consultant. Thrive Liquor & Cannabis Advisors provides compliance audits and recommendations for BC wine store licensees. During a compliance audit, we look for the same contraventions that a liquor licensing inspector would.
Audit Wine Shop Inventory
Account for all inventory in each category so that concise records can be supplied to a buyer. Consider liquidating obsolete stock, old stock and slow sellers to reduce carrying costs. Make sure your inventory count is up to date and there is no breakage or unposted invoices.
Determine Market Value
Hire an appraiser or business sales broker to conduct a business valuation. They will determine your wine shop’s value by assessing revenue, expenses, assets, location, customer base, employees, past financial performance, and industry trends.
Clean & “Stage” Your Wine Shop for an Optimal First Impression
Make the best first impression and “stage” your business for sale.
- Thoroughly clean the interior
- Clean the exterior, entrance way, windows and doors
- Declutter cash desks, hallways, and storage areas
- Fix broken displays, shelves, fridges and racks
- Remove unused furnishings
- If walls are damaged, faded or grungy, consider hiring painters to repair and paint
- Make sure all lights are on. Replace burnt out bulbs immediately.
Tip – even if you are not considering a sale, do the above anyway! Enhanced aesthetics in a retail store really make a difference to the bottom line.
Conduct Due Diligence on Potential Buyers
By conducting due diligence on a prospective buyer, you’ll find out whether they are the right fit. Assess whether they have the financial capacity and experience to run a wine shop and take on a lease agreement for the space.
Create a Sales Packet for Potential Buyers
A sales package or “sales packet” is your pitch. The intent is to leave a potential buyer with a positive impression of the wine store. At the same time, the sales package will show that you are serious and organized.
In the package, include information about the business’s history, financial performance, inventory, wine shop license, lease agreements, customer base, employees and training.
Consider hiring a professional to create the sales package. Organized the sales package so that it presents relevant information and benefits clearly.
Selling a Wine Shop or Liquor License?
If you’re buying or selling a wine shop license, talk to a consultant at Thrive Liquor & Cannabis Advisors. We can match you to buyers. To help facilitate the sale transaction, we offer inventory and compliance audits and recommendations for improvements to your store.