Busy Gas Station & Convenience Store-Suburb in North Denver CO
(This business is under a Letter of Intent until October 10th. The LOI allows me to continue to gather emails and send out the sales package but the Seller can’t engage in any way until it either falls apart or expires.)
Same owner since the mid 1970’s who has been absentee for 25 years. He has had the same store manager since the mid 1990’s who will stay and continue to manage the store if the new owner would like him to. He is selling because he needs to fully retire.
This is a location driven business that provides steady revenues and earnings which is both sustainable and will not change the day after the ownership transfer. Both the revenues and earnings have steadily increased over time including 2018’s revenues of 3M with properly adjusted EBIDTA of $205K. This business has 70,000 in FF & E included.
An owner can change the products in the convenience store and price them as they would like. The only exception to this is the lottery. His current license only allows him to sell fermented malt beverages which includes beer, wine coolers, spiked seltzers, etc. In order to sell other alcoholic beverages so the new buyer would need to surrender your current license and apply for one that would allow you to sell other alcoholic beverages. Most gas station convenience stores only carry beer so no changes are needed except the transfer of the license. Since the change in the beer strength allowed as of January 1st 2019, their beer revenue has doubled. Expanding this is a potential area of future growth. Plus, traffic has steadily increased over the years.
The company has virtually no advertising budget and the owner believe this business can be more profitable with a new owner who could give it more attention. The Sales price is $690K plus inventory which is less than 4 times the earnings. Gas Station/Convenience stores typically sell for 4 to 5 times the adjusted EBITDA. His cost of inventory for the store runs between $48K and $57K depending on the season and fuel between $4,000 and $24,000 depending on the date of their last shipment.
The buyer can be absentee with no specific experience is necessary. The current owner and manager can train the new owner quickly.
The current agreement with the nationally branded gas station is up in less than two years but the Seller believes that all buyers will choose to extend that contract which will be the Buyers choice. The real estate lease is up in August of 2020 but can be automatically extended until 2025 and can negotiate a longer lease at any time.
Location: Suburb in North Denver