The ThompsonGas Acquisitions Team has been involved in several conversations with owners considering selling their propane business. Time and time again, as I visit with propane owners across the country and we discuss whether selling their propane company is the right decision, I’m pleasantly surprised to find I always learn something new. Whether it’s a heart warming story told by a third generation propane owner, or a propane business patriarch eager to retire but wants to make certain his employees will be cared for, it never ceases to amaze me how passionate people in our industry truly are.
But once we get down to specifics, the nitty gritty that’s part of acquiring a propane business, I discover that many owners aren’t really ready to sell their propane company. It’s not that they aren’t willing and able to find a leading propane company to sell their business to, rather, there’s more they should do before putting their propane business on the market.
We’ve talked about some of these items before, but it’s crucial as a propane business owner looking to get the best offer for their propane company that you really review the following areas:
- Have you secured as many long-term contracts with larger propane accounts as possible?
- Do you have a firm understanding of your accounts receivable as well as your accounts payable for the past few years?
- Have you done everything possible to ensure your signed tank agreements are as close to 100% as possible?
- Can you show an upward trend in the margins of your propane business?
If you can’t answer “yes” to at least three of the above questions, honestly, you may be selling your propane company short. Jeff and I are able to help you get a better understanding on what you should focus on to make your propane company more attractive to potential buyers. As always, please feel free to contact me directly at 913.638.8677 or Jeff at 301.432.3882.