Listing ID: 82467

Business Overview

This business is one that when you walk into their facilities, you instantly feel the level of high quality and strong management. Seller will consider staying long-term to continue running this Company’s rapid growth, so the Buyer can immediately step in to participate in opening additional service areas. You’ll be amazed to see management’s five-year business growth plan.

Approximately 1/2 of propane sales is residential, with agricultural customers accounting for 1/3 of gallons sales. The business is aggressively increasing their tank control (Company-owned tanks). Their propane gross margins are attractive, and propane gallons sold are increasing by an incredible 30% per year!

The Company features a locally owned, friendly culture with superior customer service.
Purchase price includes 17 total vehicles and fuel storage for 135,000 gallons.

Propane has a bright future! It is a safe, efficient, and reliable alternative to electricity that offers many advantages. It is a low carbon, clean-burning energy source that emits almost no air pollutants, and it is eco-friendly when compared to other fuels. Propane is less harmful to the environment than fuel oil. When burned, propane emissions easily meet the standards for clean air set by the EPA.

Seller owns most of the business’s real estate properties, which are included in the sale. Wholesale inventory and accounts receivable must be purchased in addition to the asking price. It may be possible for a negotiated amount of the purchase price to be allocated as earn-out consideration.

Financial

  • Asking Price: $9,000,000
  • Cash Flow: $406,938
  • Gross Revenue: $4,000,031
  • EBITDA: N/A
  • FF&E: $6,047,574
  • Inventory: $341,123
  • Inventory Included: N/A
  • Established: N/A

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:Yes
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:16
  • Furniture, Fixtures and Equipment:N/A
Purpose For Selling:

Retirement

Additional Info

The transaction doesn't include inventory valued at $341,123*, which ins't included in the listing price.

The business has 16 employees and is located 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 individuals resolve to sell companies. Nevertheless, the true reason and the one they tell you may be 2 totally different things. As an example, they might claim "I have a lot of various responsibilities" or "I am retiring". For lots of sellers, these reasons are valid. However, for some, these might just be excuses to attempt to conceal the reality of changing demographics, increased competitors, recent reduction in incomes, or a variety of other factors. This is why it is extremely crucial that you not depend totally on a seller's word, but instead, utilize the vendor's answer combined with your overall due diligence. This will repaint a more realistic image of the business's current scenario.

Existing Debts and Future Obligations

If the current business is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your offer. Lots of businesses finance loans with the purpose of covering things like supplies, payroll, accounts payable, and so on. Bear in mind that in some cases this can mean that earnings margins are too tight. Numerous businesses fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to take into consideration. There may be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with vendors that must be fulfilled or might lead to charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the area draw in brand-new consumers? Most times, businesses have repeat consumers, which develop the core of their everyday profits. Specific factors such as brand-new competitors sprouting up around the location, road construction, and also staff turnover can influence repeat consumers and also negatively impact future incomes. One vital point to think about is the placement of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more people that see the business regularly, the better the opportunity to build a returning customer base. A last idea is the basic location demographics. Is the business placed in a densely inhabited city, or is it located on the outside border of town? Exactly how might the neighborhood mean house income impact future earnings prospects?