The value is a result of your actions as the business owner.
When placing a value on your propane business, you will need to answer the normal questions about number of gallons and customers as well as following:
- What percentage of customer owned versus company owned propane tanks are at your customers locations? If you have a higher-than-normal number of tanks that are customer owned, it may make the propane business buyer uncomfortable. They may have concerns about the stability of your customer base under the new ownership.
- What condition are your tanks in? Propane business buyers will want to check and see if your tanks are new or highly reconditioned as well as the age.
- What is the condition and age of your delivery and service vehicles? The propane business buyer will be looking for newer model vehicles that have been well maintained, with service records from a reputable commercial truck maintenance company.
- What is the curb appeal and condition of your office and storage location? What will the buyers see when visiting your office and storage location? Have they been well maintained? How do they represent your company and reputation?
- Do you have loyal employees that can handle the workload? How have your employees been treated over the years? Are they trained, loyal, and well-balanced? The buyers will want to know if they can take all the employees on board and continue to build your business.
So, whether you are looking to retire and leave the industry, or you want to stay and grow the business, remember the value will be a result of your actions. ThompsonGas can help you determine how much your propane business is worth. Please contact Dan Carrigan at 913-638-8677 or Jeff Kerns at 301-432-3882 to discuss your options.