Listing ID: 82439
For decades, this locally-owned propane retailer has established excellent customer loyalty throughout its 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 2021’s record cold blast.
This opportunity won’t last long, inquire right away!
- Asking Price: $1,600,000
- Cash Flow: $334,822
- Gross Revenue: $1,915,057
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
Why is the Current Owner Selling The Business?
There are all types of reasons people decide to sell businesses. However, the true factor and the one they tell you may be 2 completely different things. For instance, they may state "I have way too many various commitments" or "I am retiring". For numerous sellers, these factors stand. But, for some, these may just be justifications to attempt to conceal the reality of changing demographics, increased competition, recent reduction in revenues, or an array of other factors. This is why it is extremely vital that you not depend entirely on a seller's word, however rather, utilize the seller's response along with your general due diligence. This will repaint a more realistic image of the business's existing scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which many 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 points such as stock, payroll, accounts payable, etc. Remember that occasionally this can imply that profit margins are too thin. Lots of organisations fall into a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future obligations to think about. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with vendors that should be fulfilled or may result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the location bring in new clients? Often times, operating businesses have repeat customers, which develop the core of their daily profits. Particular factors such as new competitors sprouting up around the location, road construction, and also personnel turn over can impact repeat clients as well as negatively influence future profits. One essential point to take into consideration is the area of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more people that see the business often, the greater the opportunity to build a returning consumer base. A final thought is the general location demographics. Is the business situated in a largely populated city, or is it situated on the outside border of town? Exactly how might the neighborhood mean household earnings influence future revenue potential?