Listing ID: 66615
Business Overview
This business is a successful high-volume gas station, restaurant, and convenience store. Independently owned and operated in the same location for multiple decades, the retailer is a landmark going concern in service of an established multi-generational client base consisting of community residents, commercial entities, and a large contingent of visitors to the area. Strategically located on a main arterial, the business attracts a diverse customer demographic and offers a wide selection of high-margin, convenience-based products and services including petroleum, groceries, alcohol & tobacco, lottery, outdoor and recreation products, grab-n-go food and beverage items, and dine-in service facilitated by a busy on-site quick service restaurant.
Additional revenue is generated through long-term subletting arrangements complimentary to the primary business model.
The business has demonstrated consistent year over year sales growth remaining unaffected by the pandemic and posting a record year in 2021. Multiple recent upgrades and infrastructural improvements have been implemented to optimize
efficiency of operations and meet the steadily growing customer demand. Equipment and facilities are regularly maintained to minimize downtime. The retailer enjoys a predictable business cycle throughout the year with a strong seasonal boost
during the traditional vacation, travel and outdoor recreation months of spring, summer, and early fall.
The mixed-use going concern occupies a 4200 square foot building on an approximately 1.75-acre lot of prime real estate. The associated commercial real estate is included in the sale.
The business is run 100% absentee with ownership contributing approximately 10 hours of executive and administrative oversight per month remotely. Ordinary course of business is supported by a team of 25-30 employees pending seasonality.
The business is presently fully staffed with multiple tenured team members in supervisory, managerial, and leadership roles.
The lead broker for this company at IBA is Oliver Kotelnikov. Mr. Kotelnikov can be contacted directly at (425) 454-3052 or oliver@ibainc.com.
Financial
- Asking Price: $2,975,000
- Cash Flow: $330,000
- Gross Revenue: $3,600,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: $175,000
- Inventory Included: Yes
- Established: N/A
Detailed Information
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:4,200
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
The seller will provide an appropriate transition training/consulting period to smoothly transfer ownership of the company.
Additional Info
The deal shall include inventory valued at $175,000, which is included in the requested price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people resolve to sell operating businesses. However, the real reason vs the one they tell you may be 2 totally different things. For instance, they may claim "I have too many other commitments" or "I am retiring". For many sellers, these factors stand. But also, for some, these may simply be justifications to attempt to conceal the reality of altering demographics, increased competitors, recent decrease in earnings, or a variety of various other factors. This is why it is very crucial that you not count entirely on a seller's word, but instead, utilize the vendor's answer along with your total due diligence. This will paint a more practical picture of the business's present scenario.
Existing Debts and Future Obligations
If the existing business is in debt, which numerous companies are, then you will need to consider this when valuating/preparing your offer. Lots of operating businesses take out loans with the purpose of covering items like stock, payroll, accounts payable, etc. Bear in mind that in some cases this can mean that profit margins are too tight. Many businesses fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future obligations to take into consideration. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with vendors that need to be satisfied or may result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the area bring in new clients? Often times, operating businesses have repeat consumers, which form the core of their daily profits. Particular variables such as new competition growing up around the area, road construction, as well as staff turnover can impact repeat customers and negatively impact future revenues. One crucial thing to think about is the area of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Obviously, the more people that see the business regularly, the higher the possibility to construct a returning consumer base. A final thought is the basic location demographics. Is the business located in a largely inhabited city, or is it situated on the edge of town? How might the local typical home earnings impact future income prospects?
