Enough equity for the lender plus inventory and working capital. There is no single grocery percent.
The parent guide is /guides/how-much-money-you-need/. 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 much down payment to buy, recast SDE of $416,909 at 1.74×–3.22× plus $239,520 inventory at cost frames a going-concern band of about $964,942 to $1,581,967. The 2.65× midpoint lands near $1,344,329. Lease remaining term and license lag can move the check more than the multiple.
Checklist: How much down payment to buy
- 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 much down payment to buy, scan data, and license clocks — not on a neighbor’s rumor multiple.
Multi-store sales need a shared recast and a shared license calendar, or they unravel store by store.
Turns are not one number. Center store and wine do not share a clock. That is how a grocery file is actually read.
A below-market related-party rent juiced the earnings and will reverse on day one. Put it in the CIM or it will show up as a re-trade.
Bulk-sale or successor-liability practice can still exist after UCC Article 6 died. See also turns, DSD, wholesaler, asset sale.
WARN and union contracts are calendar items on larger headcount files.
Revenue multiples hide rent and labor. Use them to sanity-check, then return to SDE. That is how a grocery file is actually read.
Earn-outs on grocery are hard because the buyer controls mix after Monday. Put it in the CIM or it will show up as a re-trade.
Distressed stores still have inventory and a lease. Price those, not a turnaround novel. See also SDE, inventory at cost, shrink, SNAP authorization.
Department gross margin hides in a storewide blend. Meat and produce can sink a “healthy” number.
CAM true-ups can erase a year of “extra” SDE. That is how a grocery file is actually read.
Alcohol is a class, a quota, or a control store — never “the liquor license” as one magical asset. See also lease diligence, liquor transfer, recasting a P&L.
Employees learn from vendors and shoppers. Confidentiality is a process, not a speech. Put it in the CIM or it will show up as a re-trade.
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.
Tobacco licenses sit with tax and health agencies, not with the APA automatically. That is how a grocery file is actually read.
Non-competes have to be enforceable in the state and narrow enough to keep.
FMI channel facts describe a supermarket sample. Your 8,000 square foot box is not that sample. See also lease diligence, liquor transfer, recasting a P&L.
FIFO versus a messy room is how you start a fight at 2 a.m. Put it in the CIM or it will show up as a re-trade.
APA schedules are where the real store lives: contracts, equipment, excluded assets. That is how a grocery file is actually read.
EBT deposits should reconcile to the SNAP story. A gap is either mix, downtime, or fiction.
Lease remaining term under 24 months without options is a price cut, not a footnote. See also SDE, inventory at cost, shrink, SNAP authorization.
Lottery contracts are often personal. Confirm before you count commission as durable. Put it in the CIM or it will show up as a re-trade.
Transition hours are a close condition. Write them. That is how a grocery file is actually read.
HFFI and state healthy-food programs change; do not quote a stale dollar cap.
Inventory night needs rules: what is unsellable, who pays the crew, how disputes resolve.
The LOI should say how inventory is counted and how licenses are conditioned. That is how a grocery file is actually read.
Scan data is the adult conversation. A weekly-sales spreadsheet without department mix is a rumor. Put it in the CIM or it will show up as a re-trade.
Banner fees and program charges belong in the recast as continuing costs if the buyer will keep the fascia. See also SDE, inventory at cost, shrink, SNAP authorization.
WIC is a vendor file, not a sticker on the door.
Add-backs that repeat every year are the business. Stop calling them one-time. That is how a grocery file is actually read.
Food-desert rhetoric does not replace a P&L. Put it in the CIM or it will show up as a re-trade.
Working capital is the cash to buy the next load, not a vibe. See also turns, DSD, wholesaler, asset sale.