How to Buy a Gas Station
Buy a gas station is on the mind of a lot of prospective business buyers. The reasons being include:
- They can make a lot of money.
- The convenience store takes in cash sales
- Everyone needs to buy gas regardless of the economic climate.
Gas Station Due Diligence
There is a lot of room for misrepresentation in gas stations in seller reports to buyers. Some of the reasons for having an expert help you learn how to buy a gas station are:
- It is hard to prove cash income.
- It takes an understanding of gas stations to explain the differences in the cash flow and what the seller reports. The reports do not agree with each other, which means someone is hiding something.
- The number of gallons the station sells per month must be enough to cover the overhead.
- The margin of profit on gas purchases can vary from month to month or year to year. You need current information.
- Asking prices and market prices can and do have a wide variation.
- Major oil companies can close down a station at the end of their lease and the owner is left high and dry.
We recommend expert guidance in order to ascertain whether or not a particular gas station is a good purchase or not, no matter how well it appears to be doing on cursory review.
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Willard Michlin is a CPA, CFE (Certified Fraud Examiner) and Business Broker. He offers assistance, anywhere in the USA, in the key areas involved in the buying of a business: Due Diligence and Business valuation. He is an experienced, honest and trustworthy consultant. He has published many articles and is in demand as a public speaker in and for the business community. You can write to Willard at Willard@EvaluateABusiness.com and he will always answer your questions. He can also be contacted at his Seal Beach, California office by calling 805-428-2063