Seller Financing Available
Denver Gas/Diesel Station, $11.7M Rev, 250K Adj EBITDA, Growth Opp
Denver Gas/Diesel Station, $11.7MM Rev, $253K Adj EBITDA, 200K Assets, 54 Yrs Ol
2014 YTD Rev to November 3oth was 10,970,590 with adjusted EBITDA of 253,894 which is above last year and tracking toward an adjusted EBITDA of over 275K for the year. 2013’s total revenue was 11,272,357 with adjusted EBITDA of 186,689. They had their street closed by the city for all but local traffic for almost 3 months during 2014 for construction and they are still on track to beat 2013 both in revenues and adjusted EBITDA.The company’s customers are a mix of in-house accounts and credit card usage. This company has strong recurring revenue based on these relationships.
The station is located in the main central industrial area closest to the middle of Denver which is why a salesperson could increase their accounts easily (location, location, location).
The company is a family business that has never employed sales associates and relies on their location, reputation, and long standing relationships with the companies who they supply gas and diesel to. The majority of their customers are companies and the owners believe that hiring a salesperson which can offer discounts to corporate customers would be a great way to grow the business.
They have been very passive and have not changed the station in years. There is a tremendous opportunity to remodel it with a full convenience store and plenty of room to add additional parts and supplies for trucks also. The station already has the bays to re-start a truck repair and return it to being a full service station. The new owner could sub this out making money on it even if they had no interest in running that part of the business themselves. In addition, there is room for truck storage on the land which would be easy to rent out based on current demand. There is also separate parcels with improvements that could accommodate a company that could move in there with plenty of room for their trucks.
Sales Price $450,000 with the gas/diesel/oil and other inventory being extra based on its value on the day of the closing. As of June, the market price of their inventory was approximately $100K.
Location: Denver, CO
Terms: $450,000 with $400,000 down at closing and the seller will carry $50,000 over 2 years. They are keeping their cash and the difference of Accounts receivable less account payable and will transfer the business debt free. Just click and fill out this NDA link and submit it for the sales package: NDA link is: http://companybroker.com/buyer-profile-jeff.htm You may also call Jeff Chapman at 303-905-7607 or email me at firstname.lastname@example.org.
Overview and Selling Points:
? Sale Includes an estimated $200,000 in current value equipment. The inventory is extra and will depend on how many gallons they have and what the wholesale price of gasoline and diesel is on the day of closing eliminating any market risk to the buyer. The real estate will be sold separately and is listed at $600,000 (details below).
The equipment includes a fuel truck which saves them from having to pay freight on in their inventory and allows them to deliver inventory to some customers at a profit. This also allows them to get fuel when they need it without having to rely on the schedules of normal fuel delivery. This allows them to time the purchases based on the changing price of gasoline and diesel fuel.
The station went independent several years ago which they felt was the most profitable way to operate. The owners believe a new owner may want to take advantage of the size of the lot(s) and building(s) and operate a service and repair garage again or provide the space for rental income.
The owners are selling for two main reasons: One of the owners has been fighting an illness for years and doesn’t have the time or energy to do both and the other wants to move from Denver. The company has changed over the years in the services it provides, all the while gaining profitability. It’s base services, would complement other ideas to contribute to its growth.
The growth opportunities start with the ability to either remodel or tear down and rebuild the station. Modern gas stations make a lot of extra money from their convenience stores which drivers tend to put on their expense accounts. It is not uncommon for a driver who has to wait around while his truck in being filled up to spend over $10 in high profit margin energy drinks, snacks, cigarettes, lottery tickets. Currently they have only some drinks and snacks to purchase, mainly for customer convenience. Next, based on their low cost structure and location, a salesperson should be able to add accounts fairly easily by offering fleet/corporate/volume discounts. There are other opportunities to rent portions of the land for trucking companies, truck repair companies, or to build a truck wash, etc.
The real estate can be seen in the video walkthrough. There is also 3 parcels of land making up 2.8 acres all adjacent to each other with the gas station on the corner lot and a house on each of the other two parcels that will be sold separately to the buyer of this business. The main parcel just completed a Phase 2 environment study made with the sale in mind and have a small portion of the main property that needs to be cleaned. They have started the process which will last beyond the expected sale date and any potential cost to the new owner will be indemnified by the sellers or reimbursed by the Government. All three parcels are zoned C-3 and total 124,281 square feet.
They have 5 employees including themselves. The owners will be happy to help in the transition. The other two employees including the driver are long term employees that don’t know about the sale and they believe the driver will be willing to stay will both stay with the business. A new owner will not need any specific experience.
In summary, the new owner can increase both revenues and profitability in the future. The business and real estate are fairly priced without consideration to its upside potential.
Plus, Colorado is the best State in the country to own a business. Please see the web link. Colorado is THE "#1" fastest growing and strongest economies in the United States, per Money.MSN.com and Business Insider. This article ranks all 50 states by eight economic measures including GDP growth, housing prices, job creation and exports.
If you are NOT interested in this business for sale, but you refer someone to us who buys it and we collect the full commission, we will immediately pay you a referral fee of $2,000. Please send us anyone (or email this to anyone) who you think would be interested in this offering. Thank you.
Please fill out the NDA/Confidentiality Agreement in the first paragraph for more Information. Upon obtaining the NDA, the broker is available at any time to discuss your interest in this offering.
Jeff Chapman Eisnaugle
Company Broker Group, LLC.
999 18th St Ste 3000
Denver, CO 80216
This is prepared by Company Broker Group with information provided by the Seller. It was not created by the seller and neither the broker or the seller are responsible for its accuracy. Buyers are responsible for their own due diligence.