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my in-laws are thinking of selling their convenience store/gas station after 20 yrs.

What metrics are used to determine a good selling point. Also, they have shown an intrest is selling the business and leasing the land to the buyer to secure a nice income stream. Again, how do we determine a fair value to attract buyers and take care of my in-laws.
Any thoughts would be appreciated.
Thank you,
Bob

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Answers (10)
Joseph DiBello
Vested Business Brokers
Career Development Officer/Broker
Suffolk County, NY

Hi Bob,

I would start with finding a good broker who will not require you to sign an exclusive listing and will not charge a commission for selling real estate. The broker should be skilled in the metrics of building a selling price from your most recent financial data. I can assist you if you will contact me by clicking on my name then click on my links.

Jul 4, 2010
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Hey Bob I buy Gas Station in Tx. i would like to have more info on it , like location, price and inside sales .
Please contact at 832 228 3532
Imran M

Jul 4, 2010
Michael Hamlar
Hamlar Enterprises, LLC
Roanoke City County, VA

Bob,

I have several gas stations for sale. The biggest selling point for any potential buyer is the cash flow. Most lenders are more willing to lend funds to a business attached with real estate. I understand your premise for leasing the land which is a great idea but another major question would be if seller finance is available. If you want additional information please do not hesitate to contact us.

Apr 27, 2010
ANA Brokers
ANA Brokers
Dallas County, TX
Premium Broker

Bob,

We specialize in selling Gas Stations/C-store and have over 20 years of experience. Please feel free to contact us should you be interested in further discussions. We are based out of Dallas TX. Thank you. sales@anabrokers.com

Apr 18, 2010
Jennifer A. Mason
Jennifer A. Mason
MA

I have sold businesses for over a decade and think that hiring an experienced broker is key. You want to be comfortable with her personally and feel th-at she can negotiate for you on your in-laws behalf. Before you begin, make sure that your books and records are complete and clean, any major repairs to coolers, ceiling tiles, flooring etc is done, paint, get your tax bill, and plot plan together, licenses including health department, liquor and lottery are up to date.

Jennifer Mason, VR Baystate (Boston)-781-749-8004

Apr 13, 2010
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Cowboy Business Group
Utah County, UT

A good selling point is based on a number of factors, including discretionary cash flow. The other factors are: revenue, margins, history, inventory turns, trends, market, etc., etc. A fair value will be determined by an evaluation of the business. There is a cost for this, but it will be very useful for your in-laws to have an objective view. Some owners will use a rule of thumb depending upon the size of the business. Also, I would not only consider "experienced" brokers, but would want to know what their experience is. Bottom line is that you need to be comfortable with your broker and to be confident that he or she will be working in your best interest, not merely just another listing.

Apr 12, 2010
Aron Culver
BTI Group / Business Team
CA

Absolutely interview maybe three business brokers; but, make sure you don't waste your time with inexperienced brokers. Ask first, to deal with a veteran that has been in the business full-time for maybe more than ten years. Then, during the interview ask them to take you through the whole process. How will they value your business, effectively market your business, negotiate and structure the transaction and why? There are many questions that should be answered without you even having to ask. Lastly, make sure the professional that you hire is somebody you trust and understand.

Apr 12, 2010
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Hi
I am in the convenience store business. I normally buy along with the property, but in your case we can work out something. You can call me at 405-5329090. Thanks Danish.

Apr 6, 2010
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ANA Brokers

Hello
I am a business broker and i have a lot of buyer looking for gas station ,
you can call me and i help you to sale faster your business.
Thanks Susan 972-898-5598 stehrani@anabrokers.com

Apr 6, 2010
Julie A. Barnes, CPA
Small Business Exchange, Inc.
Travis County, TX

Common Sense Prevails

Unless you expect a buyer to ride up on a white horse and write a check for your business, this is the valuation that I strongly suggest you take into consideration. It just makes sense:

Determine your current cash flows for the business - that is, what you are able to keep at the end of every month or year after making lease payments.

Estimate the loan payments, including interest, that a buyer will need to make in order to buy your business.

Subtract the loan payments from your current cash flow.

Divide the net of this calculation by the sales price of your business.

Generally speaking, if this percentage is below 15%, the buyer is probably not going to receive a loan.

For more advice about how to valuate a business, please visit: www.AustinBusinessesForSaleBlog.com

Thanks and Good Luck!
Julie A. Barnes, CPA
President, SBX, Inc.

Apr 6, 2010

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