Buy and Sell Gas Stations & Convenience Stores

Advisory Services / Resources

Are you looking to own a business that provides steady cash flow, is relatively recession-proof, and one that sells a product in high demand?

Is your dream to own a gas station and be part of the thousands of gas station retailers across the country providing fuel and groceries to customers across the country?

The petroleum industry is undergoing many changes from a marketing perspective. Crude oil and fuel prices continue to climb due to limited refinery capacity and global demand.

Customers have come to expect a greater product and service offering, outstanding service and convenience.

The industry is comprised mainly of business owners who own one, or even up to several hundred gas station / convenience store businesses.

The trend toward consolidation to achieve greater economies of scale is likely to continue into the future. Operators in today’s business climate understand the need to optimize alternate profit centers. Like in any other business, running a gas station and/or convenience store involves perpetual learning.
“The key fundamentals to operating a successful gas station / convenience store are cash management and customer service.”

Buying a gas station or convenience store business is time intensive and is great endeavor requiring energy and focus. Through an appraisal and extensive financial analysis of the tax returns and financial statements you’ll be able to estimate and negotiate a fair price.

The business value is typically valued at 5-9 times the annual gross profits. If you do not already operate gas stations, the optimal way to estimate annual expenses is by comparing those of a comparable volume site.

In addition to providing an online marketplace for gas station buyers and sellers, we offer a complete package of advisory services which includes:

• Financial Analysis of 2-3 years in income statements to determine key areas of opportunity (i.e. expense reduction, gross profit margins, etc.)
• Assistance with store layout to optimize merchandising space
• Competitive market analysis
• Review of Inventory Control procedures
• Comprehensive retailing survey conducted with action plan recommendations

Please contact at advisory@buyandsellgasstations.com if you are interested in these these additional advisory services.

Thanks and we wish you long-term success and prosperity in the petroleum and convenience store industry.

Selling Tips

How to Prepare Your Gas Station / Convenience Store Business for Sale

Selling a gas station business can be the largest and most important deal of an entrepreneur's career. Regardless of what prompts the sale, selling a gas station business is a high-stakes transaction, with far-reaching financial and emotional consequences.

In the best of all worlds, the owner begins to prepare his or her gas station business for sale at least one year in advance. Start by assessing financial books with an eye toward creating audited financial statements and projections that illustrate the company's revenue and growth potential. Records should be formalized and clearly document all transactions. This way, potential buyers can easily evaluate the company, and a new manager can take over with minimal training.

Eliminate idiosyncrasies. The new gas station owner will not want to face a customer who expects special treatment, nor will he want to be the ogre who cancels a long-standing verbal agreement with the company's oldest customer.

Examine all supplier and customer contracts. Examine the existing fuel supply agreement. Make sure terms and conditions will not expire or require renegotiation just as a new owner steps in. Terminate contracts that might trouble a potential buyer or that drain the company financially or serve little purpose.

Start codifying company policies and procedures that exist as unwritten rules. If necessary, create a gas station / convenience store procedure manual that documents exactly how to best run the business; be sure to include your unspoken, undocumented techniques.

Review your real estate leases, especially if your business is tied to its location. Make sure the lease does not expire or require renegotiation within the time frame that you plan to sell the company. If the company's location will discourage buyers, consider moving the location before you place the business up for sale.

Analyze the equipment leases and other material contracts from the buyer's perspective.

Fully evaluate and catalog company assets, from property to warehouse inventory to employees. If you delayed investing in computer upgrades designed to manage and control the flow of inventory, now is the time to modernize. If company assets include real estate, separate or sell the property before the company hits the market.

Real estate can devalue a gas station business simply because it complicates the financial records, which in turn can make potential buyers hesitant to assume a new business with added expense.

Finally, don't forget about employees. The loss of key employees during a sale can kill a deal. Key employees may be crucial to the new owner's success, so it's important to determine which employees are prepared to stay with the company during and after the transition. Also, don't forget to inform your staff of your intentions to sell. It is important that employees don't hear about the pending sale of the company from a third party.

Top 10 Mistakes Made When Selling A Gas Station Business

Selling a gas station / convenience store business takes both careful preparation and the ability to handle a complex transaction — with the help of an attorney, of course. Many gas station owners are not experienced in selling a business, thus they may make mistakes along the way. Here are 10 of the most common mistakes to avoid:

1 - Not learning the ropes. Like anything you do in business, there will be a learning curve when it comes to selling a gas station business. Learn the terminology and how the selling process typically proceeds so that you can structure the deal properly and come out a winner.

2 - Setting a price too soon. You set yourself at an immediate disadvantage if you state a price without knowing the potential value of the business. Do not sell yourself short by setting a price too quickly. Assess the value of your gas station business very carefully with your accountant or financial advisor and your attorney, and then set a price. Remember, you can always come down, but you generally cannot go up once you have determined your selling price.

3 - Selling too quickly. Unless you have to sell the gas station business quickly for financial or personal reasons, you should not rush to a sale without exploring all of your options to determine whether or not you are getting a fair value for your business.

4 - Lack of confidentiality during the sales process. Once word gets out that the business is being sold employees may leave, vendors may hold back on deals, and customers may head to your competitors. The value of your gas station / convenience store business can drop quickly if you do not maintain confidentiality.

5 - Not increasing the value. Gas Station owners who know well in advance that they want to sell the business have time to build up the value and make it more attractive to buyers. They have been probably asking themselves, “Is now a good time to sell my gas station?”

6 - Not identifying the best buyers. You need to spend time on serious gas station buyers only. If a potential gas station buyer is not pre-qualified or does not appear to be prepared to make an offer, you may very likely be wasting your time. Do not spend time with the wrong buyers.

7 - Being unprepared to defend your valuation. If you have worked hard to create a value for your gas station business, you should be prepared to defend and substantiate that value. Prepare backup materials to defend the value of your business.

8 - Failing to negotiate. How much leverage you have may depend largely on how many potential gas station buyers are out there. Nonetheless, you need to be prepared to negotiate, and for this reason you should have professional guidance when you sell a gas station business.

9 - Waiting too long to sell. Many gas station owners regret not selling at the most opportune time. By waiting, they subsequently encounter increased competition or have a product that has declined in value because of economic conditions. If you are thinking of selling, pay attention to changes in the economy and to the state of the petroleum / convenience store industry, and look for the best selling opportunity.

10 - Not using the skills of professionals. You should seek out sound business and legal advice from professionals who have been involved with the sale of gas stations and/or convenience store businesses. Selling a gas station or convenience store is a complicated process and not one that you should take on without expert assistance.