The $1.4M Liquor Store That Prints $500K/Year

In this episode the hosts break down a surprisingly solid liquor store deal in Washington, DC, questioning whether a 3x multiple and $500K SDE is too good to be true.

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Michael Girdley – Entrepreneur & investor. Twitter:   / girdley  
Bill D’Alessandro – CEO of Elements Brands. Twitter:   / billda  
Heather Endresen – SBA lending expert & advisor. Twitter:   / endresenheather  
Mills Snell – Small business investor & advisor. Twitter:   / thegeneralmills  

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This week, the team reviews a long-established liquor store in Northwest Washington, DC. With $2M in annual revenue and $500K in SDE, the business is priced at $1.4M—plus $290K in inventory—putting the effective multiple just over 3x. The store has been operating since 1941 and sits on a corner in a high-traffic, high-income neighborhood with a 10-year lease at $9,500/month.

Key Highlights:
Asking price: $1.4M + $290K inventory, SDE: $500K
Liquor store in DC proper with 80+ years of history
10-year lease at $9,500/mo in a high-income area
SBA-preapproved (though Heather warns that means nothing without tax returns)
Macro headwinds in alcohol consumption vs. 10% YoY sales growth