How Much Is a Liquor Store Worth?
Most independent liquor stores sell on a multiple of what the owner actually earns from the business. Everything else — sales, inventory, the building — sits around that core number.
Written by the Northland Retail Acquisitions team · Reviewed February 2026
The short version
Value starts with seller's discretionary earnings (SDE): the profit the business produces, plus the owner's own pay and benefits, plus any personal or one-off costs run through the books. That figure is multiplied by a market multiple. Inventory is added separately at cost, and any real estate is valued on its own.
So the shape of the answer is: SDE × multiple + inventory at cost, with the property, if owned, quoted beside it rather than inside it.
Why sales are the wrong starting point
Owners often ask what percentage of revenue a store is worth. It is an understandable question and a poor guide. Consider two stores each doing $1.4m in annual sales. The first leans heavily on discounted beer and cigarettes at thin margin, pays high rent, and needs two staff on every shift. The second sells a deeper wine and spirits range at better margin, owns its building, and runs lean. The first might produce $90,000 of SDE; the second $260,000. The same revenue, and roughly three times the value.
What moves the multiple
| Factor | Pushes the multiple up | Pushes it down |
|---|---|---|
| Owner involvement | A manager already runs the store | The owner is behind the counter six days a week |
| Earnings trend | Three years of steady or rising profit | Declining or erratic profit |
| Records | Clean books that reconcile to tax returns | Cash-heavy, informal or incomplete records |
| Premises | Owned building or a long, assignable lease | Short lease, rising rent, uncertain renewal |
| Competition | Limited nearby competition, established trade area | A new big-box or chain store close by |
| Mix | Wine and spirits depth, good margin | Almost entirely low-margin lines |
| Size | Larger, more stable earnings base | Very small stores, where one bad month matters |
Working out your SDE
Start with the net profit on your most recent full-year accounts, then add back:
- Your own salary, wages or drawings, and payroll taxes on them
- Personal costs run through the business — a vehicle, phone, insurance, travel
- Interest on business borrowings
- Depreciation and amortisation
- Genuine one-off costs that will not repeat for a buyer
Do not add back a wage for a family member who genuinely works in the store, or a cost a buyer will have to carry anyway. Add-backs that cannot be evidenced do not survive due diligence, and a number that collapses halfway through a sale costs more goodwill than it ever gained.
Inventory and real estate
Inventory is normally counted shortly before closing and paid at cost, separately from the business price. Dead or unsaleable stock is usually excluded or discounted by agreement.
If you own the building, treat it as a second asset with its own value. You can sell both, sell the business and lease the property to the buyer, or sell the property and keep operating. Each route produces a different total and a different tax position, which is a conversation for your accountant as much as for a buyer.
What an estimate can and cannot tell you
Any online estimate — including ours — is a preliminary range built from the information you provide. It is not an offer, an appraisal, or a certified valuation. Its job is to tell you whether selling is worth a serious conversation, before you commit to anything or tell anyone.
Common questions
- Is a liquor store worth a percentage of its annual sales?
- Sales-based rules of thumb are a cross-check, not a valuation. Two stores with identical sales can differ sharply in earnings depending on their mix, rent and staffing, and it is earnings that a buyer pays for.
- Does inventory get added to the price?
- Usually. Inventory is counted at or near closing and paid for at cost, on top of the value of the business. It is not part of the multiple.
- What if I own the building?
- The property is valued separately from the business, on its own merits. Combining them into one number hides whether either figure is fair.
- Why does my accountant's number differ from a buyer's?
- An accountant typically reports taxable profit. A buyer looks at seller's discretionary earnings — profit plus the owner's pay, plus personal and one-off costs run through the business. The second figure is normally higher.
Want the number for your own store?
It takes about three minutes, it is free, and nothing is listed publicly.