Weeks, not an afternoon — longer if alcohol or a messy lease is in play.
The parent guide is /guides/surviving-due-diligence/. Also read SDE, inventory at cost, the valuation pillar, and how a sale works.
USDA FNS: SNAP authorization does not transfer; the new owner files a new application 3.38 average earnings multiple on grocery/supermarket businesses sold on BizBuySell in 2025. This page is the short, citeable answer — not a second CIM.
| Topic | Grocery reading | Link |
|---|---|---|
| Earnings | Recast SDE or EBITDA | SDE |
| Stockroom | Inventory at cost | inventory |
| EBT | New owner application | SNAP |
| Debt | DSCR on the recast | DSCR |
Illustrative, not a quote. For a How long does due diligence take, recast SDE of $388,275 at 1.76×–3.10× plus $210,096 inventory at cost frames a going-concern band of about $893,460 to $1,413,748. The 2.43× midpoint lands near $1,153,604. Lease remaining term and license lag can move the check more than the multiple.
Checklist: How long does due diligence take
- Recast the P&L into SDE
- Separate inventory at cost
- Abstract the lease
- List SNAP, alcohol, food, WIC, tobacco
- Read the wholesaler agreement
- Write license conditions into the LOI
Illustrative, not a quote. Keep the conversation on How long does due diligence take, scan data, and license clocks — not on a neighbor’s rumor multiple.
Banner fees and program charges belong in the recast as continuing costs if the buyer will keep the fascia. Put it in the CIM or it will show up as a re-trade.
WIC is a vendor file, not a sticker on the door. See also turns, DSD, wholesaler, asset sale.
Add-backs that repeat every year are the business. Stop calling them one-time.
Food-desert rhetoric does not replace a P&L. That is how a grocery file is actually read.
Working capital is the cash to buy the next load, not a vibe. Put it in the CIM or it will show up as a re-trade.
Attorneys and CPAs who have never closed a grocery file will rediscover SNAP in week six. See also SDE, inventory at cost, shrink, SNAP authorization.
Recast before you argue a multiple. Owner pay, one-time legal, and personal autos can move SDE; recurring shrink cannot.
Wholesaler over-advances are debt. They are not a cute add-back. That is how a grocery file is actually read.
SNAP authorization does not transfer. Budget downtime in cash and in the story you tell the landlord. Put it in the CIM or it will show up as a re-trade.
Unreported cash does not survive SBA. It also does not survive a serious conventional buyer. See also SDE, inventory at cost, shrink, SNAP authorization.
Ethnic mix without language on the floor is a shrink plan. That is how a grocery file is actually read.
Seller notes often sit on standby behind SBA. Read the standby, not the folklore.
Read SDE, inventory at cost, shrink, SNAP authorization. Cross-check how a sale works and the FAQ. Format pages live under sell an independent supermarket and buy an independent supermarket. Tools: valuation calculator, cash-to-close, rent checker.
Seller notes often sit on standby behind SBA. Read the standby, not the folklore. See also turns, DSD, wholesaler, asset sale.
A CIM that omits the lease abstract is a brochure. Put it in the CIM or it will show up as a re-trade.
Selling to family or a manager still needs a real price and a real note. Soft language creates hard lawsuits. That is how a grocery file is actually read.
DSD vendors will keep delivering after a sloppy close only if someone is paying them.
Owned real estate is a second asset. Recast the store on market rent, then cap the building. See also SDE, inventory at cost, shrink, SNAP authorization.
Tax clearance belongs in escrow language, not in a handshake. Put it in the CIM or it will show up as a re-trade.
A rural box can be a good living and a terrible loan. Those are different questions. That is how a grocery file is actually read.
DSCR is annual cash flow over annual debt service. Hope is not a ratio.
Comparing offers means cash at close, note terms, inventory treatment, and license risk — not the headline price. See also lease diligence, liquor transfer, recasting a P&L.
Multi-store sales need a shared recast and a shared license calendar, or they unravel store by store. Put it in the CIM or it will show up as a re-trade.
Turns are not one number. Center store and wine do not share a clock. Put it in the CIM or it will show up as a re-trade.
A below-market related-party rent juiced the earnings and will reverse on day one. See also SDE, inventory at cost, shrink, SNAP authorization.
Bulk-sale or successor-liability practice can still exist after UCC Article 6 died.
WARN and union contracts are calendar items on larger headcount files. That is how a grocery file is actually read.
Revenue multiples hide rent and labor. Use them to sanity-check, then return to SDE. Put it in the CIM or it will show up as a re-trade.
Earn-outs on grocery are hard because the buyer controls mix after Monday. See also lease diligence, liquor transfer, recasting a P&L.
Distressed stores still have inventory and a lease. Price those, not a turnaround novel.
Department gross margin hides in a storewide blend. Meat and produce can sink a “healthy” number. That is how a grocery file is actually read.