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Busy and Nationally Branded Gas Station & Convenience Store

Denver, CO (Adams County)

Seller Financing Available
Busy and Nationally Branded Gas Station & Convenience Store
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Asking Price: $690,000

Cash Flow: $205,000

Gross Revenue: $3,000,000

EBITDA: $205,000

FF&E: $70,000

Inventory: $60,000*

Rent: $2,530 /Month

Established: 1975

*not included in asking price.

Busy and Nationally Branded Gas Station & Convenience Store

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Business Description

No Specific Exp Necessary, Owner and Manager Can Train New Owner Very Quickly

(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

No Website

Details:

The tank sizes are 6,000 gallons for Unleaded, 4,000 gallons for Premium, and 2,000 gallons of Diesel. Deliveries are typically 2 to 3 times per week.

The business has 7 employees, 4 working 35 to 40 hours per week, 2 employees working 20 to 25 hours a week, and a manager that splits his time and salary with a liquor store.

The store is 2400 square feet triple net with the exception of water and sewer which the landlord pays. Current lease is $2,530 per month with property taxes are $542 per month. The rent rate real estate lease is up in August of 2020 with an automatic extension until August of 2025. The real estate is rented from a 3rd party who rents from the landlord. The new buyer will be able to finish the lease with the 3rd party and then establish a direct relationship or be allowed to negotiate directly with the landlord now. Either way, it is expected that the new buyer can get at least 15 years of control of the property at a market rate.

Thank you,

Jeff Chapman Eisnaugle
Direct 303-905-7607
Office 303-284-7025
Fax 720-524-6482
jce@companybroker.com

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. Neither the Broker or the Seller will indemnify or guarantee any forward looking statements or projections. The information contained in this e-mail message is confidential and may be protected from disclosure. Please be aware that any other use, printing, copying, disclosure or dissemination of this communication may be subject to legal restriction or sanction.

Different Brokerage relationships are available which include Seller agency, buyer agency, or transaction – brokerage.

Brokerage disclosure to Buyer or Tenant of Property. Definition of working relationships.

Seller's Agent: a seller's agent works solely on behalf of the seller to promote the interests of the seller with the utmost good faith, loyalty, and fidelity. The agent negotiates on behalf of and ask as an advocate for the seller. The seller's agent must disclose to potential buyers all adverse material facts actually known by the seller's agent about the business/property. A separate written listing agreement is required which sets forth the duties and obligations of the broker and the seller.

Buyer’s Agent: a buyer’s agent works solely on behalf of the buyer to promote the interests of the buyer with the utmost good faith, loyalty and fidelity. The agent negotiates on behalf of an accident advocate for the buyer. The buyer’s agent must disclose to all potential sellers all adverse material facts actually known by the buyer’s agent, including the buyer’s financial ability to perform the terms of the transaction. A separate written by a Buyer agreement is required which sets forth the duties and obligations of the broker and the buyer.

Transaction broker: the transaction broker assist the buyer or seller or both throughout a real estate transaction by performing terms of any written or oral agreement, fully informing the parties, presenting all offers and assisting parties with any contracts, including the closing of the transaction, without being an agent or advocate for any of the parties. A transaction-broker must use reasonable skill and care and the performance of any oral or written agreement, and must make the same disclosures as agents about all adverse material facts actually known by the transaction – broker concerning the property or a buyer's financial ability to perform the terms of a transaction and whether the buyer intends to occupy the property. No written agreement is required.

Company Broker Group, LLC, and Jeff Chapman Eisnaugle will be operating solely as a “Seller Agent” in all transactions.

Detailed Information

Location:
Denver, CO
Inventory:
Not included in asking price
Real Estate:
Leased
Building SF:
2,400
Lease Expiration:
N/A
Employees:
7
Furniture, Fixtures, & Equipment (FF&E):
Included in asking price
Facilities:
The store is 2400 square feet triple net with the exception of water and sewer which the landlord pays. Current lease is $2,530 per month with property taxes are $542 per month. The rent rate real estate lease is up in August of 2020 with an automatic extension until August of 2025. The real estate is rented from a 3rd party who rents from the landlord. The new buyer will be able to finish the lease with the 3rd party and then establish a direct relationship or be allowed to negotiate directly with the landlord now. Either way, it is expected that the new buyer can get at least 15 years of control of the property at a market rate.
Competition:
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.
Growth & Expansion:
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.
Financing:
5%
Support & Training:
The buyer can be absentee with no specific experience is necessary. The current owner and manager can train the new owner quickly.
Reason for Selling:
The owner wants to fully retire
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Jeff Chapman Eisnaugle

Business Listed By:
Jeff Chapman

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Sponsoring Broker:
Paul Olsen

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