Business Overview

This is a great opportunity to acquire a locally owned and operated Gas and Oil Company. This Company has provided outstanding service and quality products for over 86 years. The Company is a strong competitor among recognized petroleum suppliers and has built a trustworthy reputation within the community by offering a great variety of petroleum products and providing timely and professional delivery services. This is a distribution company and not a gas station.

INVESTMENT HIGHLIGHTS:

Reliable and locally owned
Location
Flexible paying terms
Competitive Pricing

GROWTH OPPORTUNITIES:

Product Line Expansion – Expanding the Company’s current product line to offer other petroleum products could increase revenues exponentially.
Addition of Salesperson – The Company has been successful by concentrating on current customers and relying on word-of-mouth referrals. A commissioned Salesperson focused on creating new relationships could greatly aid in expanding the company’s territory without upfront added expense.
Targeted Marketing – Although the company has an online presence on social media and it’s easy to find with a google search; the business could greatly benefit by increasing its marketing efforts on social media platforms by reaching out to new potential customers

Financial

  • Asking Price: $339,000
  • Cash Flow: $86,287
  • Gross Revenue: $1,170,269
  • EBITDA: N/A
  • FF&E: $207,697
  • Inventory: $32,000
  • Inventory Included: Yes
  • Established: 1936

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:1,800
  • Lot Size:N/A
  • Total Number of Employees:2
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The 1800 sf facility offers above-ground pipes for easier filling of vehicles and has a 75,000 gallon capacity tank. The facility currently sits on a half-acre lot where the store’s building consists of 3 offices and one bathroom. There is also a warehouse on the property which is used to store oils and other inventory items.

Is Support & Training Included:

Seller will train to ensure a smooth transition

Purpose For Selling:

Retirement

Additional Info

The business was established in 1936, making the business 86 years old.
The transaction shall include inventory valued at $32,000, which is included in the requested price.

The company has 2 employees and resides in a building with approx. square footage of 1,800 sq ft.

Why is the Current Owner Selling The Business?

There are all types of reasons why people decide to sell companies. However, the true factor vs the one they tell you might be 2 absolutely different things. For instance, they may state "I have a lot of other responsibilities" or "I am retiring". For lots of sellers, these factors are valid. However, for some, these may just be justifications to try to conceal the reality of changing demographics, increased competition, recent decrease in profits, or a variety of various other factors. This is why it is very essential that you not count completely on a vendor's word, however instead, utilize the vendor's response along with your general due diligence. This will repaint a more sensible image of the business's current situation.

Existing Debts and Future Obligations

If the current company is in debt, which many companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous operating businesses finance loans with the purpose of covering things such as supplies, payroll, accounts payable, so on and so forth. Remember that occasionally this can suggest that revenue margins are too thin. Lots of organisations fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future obligations to think about. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with vendors that need to be met or might result in charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the location bring in brand-new consumers? Most times, companies have repeat customers, which create the core of their everyday profits. Certain aspects such as brand-new competition growing up around the location, road construction, and also employee turn over can influence repeat consumers and negatively impact future incomes. One essential point to consider is the area of the business. Is it in a highly trafficked shopping center, or is it hidden from the main road? Undoubtedly, the more people that see the business regularly, the better the possibility to build a returning client base. A last thought is the basic area demographics. Is the business placed in a largely populated city, or is it located on the outskirts of town? How might the neighborhood mean house income impact future income prospects?