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Will Upgrading My Liquor License Increase The Sales Price When I Sell My Restaurant?

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Comments & Replies: 1     Views: 3765     Posted By: Joe Ranieri  Joe Ranieri, Business Broker: LA, Orange County Areas

My restaurant recently upgraded its beer with wine license to a full-service liquor license, and if I sell, how much can that increase my selling price? A Southern California restaurant broker specialist initiates this discussion and other advisors, business brokers, agents weigh in on this topic.

Topics: Business Valuation, Selling A Business     Tags: business valuation, liquor license, selling a business



My restaurant recently upgraded its beer with wine license to a full-service liquor license, and if I sell, how much can that increase my selling price?

This is a common question I get from restaurant owners who go from selling beer and wine on premises (#41) to being able to also sell full liquor (#47). Possibly the owner has been thinking about selling, but wanted to wait and see how much being able to sell hard alcohol and spirits have increased their monthly sales. Certain type of restaurants, such as Italian fine dining, may not see a huge demand for hard alcohol and spirits, as many people have beer and wine with their meals, so it does not increase profits that much, while other food types may, so it is a case by case basis.

A buyer will typically look at the last 2-3 years of sales, with an emphasis on the last year, so any new changes will be scrutinized, but a buyer will be looking for overall monthly sales numbers to determine a purchasing price.

A tip to a potential buyer: investigate what is the overall percentage of sales regarding beer/wine/spirits, and contact Alcoholic Beverage Control (ABC) to see if there are any restrictions on the license. With that said, selling a restaurant with a #47 in the advertisement listing may attract more eyeballs and lead to more buyers’ traffic, so it can have a benefit in getting a restaurant sold, but ultimately buyers will always look at the numbers and not "potential" in determining a price.

I would be curious how other contributors on this forum have dealt with sellers who have made upgrades to their business and wanted an increase in price based on the anticipation of future profits.


  Helpful Resources To Assist In Selling And Buying California Businesses
Jack Oh, Business Broker - LA, Orange Counties

Business broker and real estate services in the Los Angeles and Orange County areas. 10 years experience with great negotiating skills. To sell a business or buy a business in the LA or Orange County Areas phone Jack and his team at 562-787-4989.

Peter Siegel, MBA - SBA Loans, Non SBA Financing Assistance

For over 25 years I have provided niche business purchase financial advisory and loan placement services with SBA and Non-SBA Loans, Retirement Plan Conversions, Private Investors, etc. Financing amounts available: $20K to $7MM. Call today to get pre-qualified or receive financing: 866-270-6278.

Michael Davidson, Business Broker - Southern California

Los Angeles Business Broker providing M&A quality services for Small Business Owners. We leverage our technology and expertise to Simplify & Expedite the Business Sales Process. Matching the right buyer with the right business is how we define success.

Joe Ranieri, Business Broker, Orange & LA County Areas

Having owned retail/restaurant businesses for over 20 years, my interest turned to listing and selling businesses rather than owning them. I specialize tend to specialize in Orange County high volume restaurants, fast food independents and chains, bars and liquor stores. Call 714-292-5448.

Steve Zimmerman: Restaurant Broker Specialist

Steve founded Restaurant Realty in 1996. He has personally sold/leased over 900 restaurants, bars & clubs, & completed over 3000 valuations. The author of "Restaurant Dealmaker - An Insider's Trade Secrets For Buying a Restaurant, Bar or Club" available on Amazon. Reach Steve direct at 415-945-9701.

Mike Brewer: Liquor License Brokers, ABC Consulting Services

Liquor license brokerage and consulting services. We provide: Alcohol License Transfers Application Consulting & Processing, Liquor License Purchases & Sales, City Zoning Permits & Land Use Entitlements, Public Convenience or Necessity Findings and Letters. Phone Mike Brewer direct at 800-437-1100.

George Lanza, Business Broker, At Plethora Business Sales

Plethora Businesses, a division of A Premier In Services, Inc., is a Business Intermediary Consulting Firm headquartered in Orange, California. Plethora specializes in the listing and sale of small and medium sized private businesses.

William Park, Business Broker - Southern California

Highest Volume Broker in California, Simply Check our HUNDREDS of Listings! Over 25 Associates, Speaking Dozen Languages, Helping Buyers and Sellers of Small Business since 1982, Centrally Located between Los Angeles and Orange Counties, while Riverside & San Bernardino Counties are Very Accessible.


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Upgrading Liquor License: An Increase In Price When I Sell My Restaurant?

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