Buying a Liquor Store

I am trying to buy running liquor store and I need some advice. What should I look for in paper work and what kind of question should I ask the owner?

YOUR ANSWER

You haven't mentioned in your question where you are located, so the answer to your question will have to be fairly general - the legislation around re-selling liquor is different in different jurisdictions.

The first thing I would do if it was me, would be to check out what you would need to do to obtain a liquor license. If you are not able to get the required permits etc to operate as a re-seller of liquor, there is very little point in taking your investigation any further. Depending on where you are, there will be a state or federal government agency that manages business licensing and they should be able to provide a wealth of information on the requirements and the process of applying.

As for the paperwork, I would want to see the financial statements (profit and loss and balance sheets) for at least the last three years. If you are not familiar with 'accounting speak' yourself take them to a good accountant and ask them to analyze the statements for you.

I would also want information on the main suppliers for the business including current trading terms, volumes etc.

Does the business have employees? If so and the intention is that they will stay with the business if you buy it, you probably need to look over the personnel records just to make sure that they are trustworthy before you make any commitments to continue employing them.

For more information on buying an existing business, check out this page.