Due Diligence Checklist for Buying a Liquor Store

Financial Records

• 3 years of federal and state tax returns (business)
• 3 years of profit and loss statements
• Current balance sheet
• 6–12 months of bank statements
• Monthly sales reports broken down by product category
• Accounts payable and receivable summaries
• Payroll records and staffing costs

Licensing and Compliance

• Confirm liquor license is active and in good standing
• Verify license type and whether it is transferable
• Review compliance history — any violations, suspensions, or fines
• Confirm TTB Alcohol Dealer Registration (Form 5630.5d) is current
• Check for any pending investigations or hearings with the state ABC agency

Lease and Real Estate

• Review current lease terms (expiration date, renewal options, rent escalations)
• Confirm lease is assignable to a new owner
• Check for any landlord right-of-first-refusal clauses
• Evaluate location — proximity to schools, places of worship, zoning restrictions

Inventory

• Obtain a current inventory count and valuation
• Assess condition of perishable and near-expiry stock
• Understand what inventory is included in the sale price
• Review supplier relationships and any outstanding purchase orders

Operations

• Review staffing structure and which employees will remain post-sale
• Assess POS system, security systems, and equipment condition
• Identify any deferred maintenance or pending equipment replacements
• Review vendor and supplier contracts

Seasonality and Revenue Patterns

• Identify peak sales months and how revenue fluctuates
• Review year-over-year revenue trends
• Understand local competition and any planned changes in the area