Business Overview

For decades, this locally-owned propane retailer has established excellent customer loyalty throughout it’s service area.

The Seller owns the office and bulk plant facility, which is located on a busy highway with easy access. Seller will lease or sell the real estate to Buyer.

Customers can drive-up to the business dock for filling of smaller, portable tanks. Four well-maintained delivery trucks are included in the purchase.

Due to having a large holding capacity in their storage tanks, the business was one of the few Texas propane suppliers that didn’t run out of propane for it’s customers during February’s record cold blast.

Sales volume and cash flow numbers are an average from the past 3 years.

This opportunity won’t last long, inquire right away!

Financial

  • Asking Price: $1,600,000
  • Cash Flow: $272,183
  • Gross Revenue: $1,354,650
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:9
  • Furniture, Fixtures and Equipment:N/A
Purpose For Selling:

Retirement

Additional Info

The company has 9 employees and is situated in a building with disclosed square footage of N/A sq ft.

Why is the Current Owner Selling The Business?

There are all types of reasons why individuals resolve to sell businesses. Nonetheless, the genuine factor vs the one they say to you might be 2 totally different things. As an example, they may say "I have a lot of other responsibilities" or "I am retiring". For lots of sellers, these reasons are valid. But also, for some, these might simply be justifications to try to conceal the reality of altering demographics, increased competitors, recent reduction in earnings, or a variety of various other factors. This is why it is very crucial that you not depend absolutely on a seller's word, however instead, use the seller's answer along with your overall due diligence. This will paint an extra practical image of the business's current circumstance.

Existing Debts and Future Obligations

If the existing company is in debt, which lots of businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of businesses finance loans so as to cover items like inventory, payroll, accounts payable, so on and so forth. Bear in mind that in some cases this can mean that profit margins are too thin. Many companies fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also be future commitments to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with suppliers that have to be met or may cause fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the area bring in brand-new clients? Most times, operating businesses have repeat consumers, which create the core of their everyday revenues. Certain variables such as new competitors growing up around the location, road building and construction, and also employee turnover can influence repeat customers and negatively influence future incomes. One essential point to take into consideration is the area of the business. Is it in an extremely trafficked shopping center, or is it hidden from the main road? Obviously, the more individuals that see the business often, the better the possibility to construct a returning customer base. A final idea is the general location demographics. Is the business located in a densely inhabited city, or is it situated on the edge of town? Exactly how might the neighborhood average house earnings impact future earnings potential?