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What is the multiple of gross profit for a gasoline service station?

Vanessa Dalama

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Biz2Credit LLC
New York County, NY

Mark,

Biz2Credit (www.biz2credit.com) does a large no. of financing deals for gas stations. Gas Stations are valued based on C Store sales and value of the real estate. The gallon-age is used to figure out how busy the gas station is normally selling gas is not very profitable business.

Register for free on Biz2Credit.com and chose the case manager plan to know more about gas station financing deals.

Nov 5, 2010
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The BAF Group LLC
MD

If you are going to use a multiple, you don't use Gross Profit, you use Discretionary Cash Flow, or Adjusted Net Profit. And the multiple would be 1 to 1.5, as a general rule. But that is not a great way to figure that out. There are too many variables involved.

Nov 4, 2010

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