🧠 Valuation Insight: Low Margins, High Risk

 🛒 Grocery stores operate on tight margins—and even tighter tolerances for error.

Red flags include:

  • Gross margins >30% (not realistic in most cases)
  • No adjustment for spoilage or shrinkage
  • Inventory value never changes
  • Owner wages + family labor not normalized

📌 In grocery deals, small missteps = big impact on cash flow.