Citgo Gas Station, Absentee-Run Fuel & C-Store, Berkshire County MA

$841K

Revenue

$588K

SDE

4.3x

Multiple

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Full Editorial Writeup

This is a branded Citgo fuel station in Berkshire County, Massachusetts, pairing three multi-product dispensers under a canopy with an approximately 1,800 square foot convenience store. The station pumps roughly 60,000 gallons per month at an average margin of $0.35 per gallon under a rack-zero supply agreement, which is the type of favorable jobber arrangement that meaningfully protects fuel margin. The convenience store adds $105,000 to $110,000 in monthly sales at a 35% margin, and the location performs strongly in lottery sales thanks to a mixed residential and commercial trade area.

What makes this listing notable is the earnings profile relative to its modest reported gross revenue. Cash flow of $587,856 on $840,946 in gross revenue is a red flag on its face, because a station moving 720,000 gallons per year plus a $1.3M annual c-store cannot honestly gross under $1M. That means the reported gross almost certainly excludes fuel sales dollars (or reports only fuel margin), so a buyer needs to reconstruct the true revenue stack before trusting the multiple.

The business is fully absentee, run by two full-time employees, which is the single most interesting angle here. An owner-operator who shows up, tightens payroll, extends store hours, and pushes food and lottery attach can likely lift cash flow without heroics. The real estate is owned and can be leased or purchased alongside the operation, and SBA financing is available with 15% down.

Why we like it

Cash flow of $587,856 against a 4.25x multiple on the operations is attractive for fuel retail, and the rack-zero supply agreement protects that $0.35 per gallon fuel margin better than a typical dealer contract. The c-store layers on $1.26M to $1.32M of annual sales at a healthy 35% margin, giving two independent profit streams rather than pure fuel dependence.
Fuel, tobacco, lottery, and everyday c-store staples are demand-inelastic. People still buy gas, cigarettes, snacks, and lottery tickets in a downturn, and the mixed residential and business trade area gives the location repeat daily traffic that does not evaporate when discretionary spending tightens.
The prime location driving strong lottery sales is a durable local moat: gas stations compete on convenience and corner position, and a well-sited pad with three tanks and its own real estate is hard for a new competitor to replicate nearby. Cigarettes being only 30% of store revenue is a positive, meaning the store is not over-reliant on a declining, margin-capped category.
This is a textbook operator-advantage deal. It runs fully absentee on just two employees today, so a hands-on owner can cut labor leakage, extend hours, improve merchandising, and add food service, all of which flow straight to cash flow that is currently being left on the table by remote management.

How to improve it

Reconstruct the true financials in the first 30 days. Reported gross revenue of $840,946 is internally inconsistent with 720,000 gallons of annual fuel plus a $1.3M c-store, so build a clean P&L separating fuel margin, in-store margin, lottery commissions, and other income before you close.
Move from absentee to owner-operator to capture the obvious payroll and shrinkage upside. The listing itself flags that a hands-on owner can reduce payroll and grow sales, so replacing remote oversight with a working owner or a single accountable manager should lift SDE quickly.
Extend store hours and optimize the merchandising mix. With food and non-tobacco categories already carrying strong margin, add hot food, coffee, and grab-and-go to lift inside sales per fuel customer and grow the 35% margin store faster than fuel.
Push fuel volume and margin management. At 60,000 gallons per month the pumps have headroom, so test loyalty pricing, credit card fee optimization, and daily competitive price monitoring to defend the $0.35 per gallon spread while nudging gallons higher.
Lock in the real estate structure that maximizes returns. Model both scenarios (lease the property versus buy it with the business) so you know your true rent load and cap-rate value, and use SBA 7(a) at 15% down to finance the combined operating plus real estate package if the numbers support it.
Maximize the high-commission lottery and scratch category. The station already over-indexes on lottery due to its location, so give it prime counter placement, staff upsell scripts, and consistent inventory to grow one of the highest-margin revenue lines in the store.
Renegotiate or re-shop the fuel supply and card processing terms. Confirm the rack-zero agreement's remaining term and rebates, and benchmark credit card interchange, which is often the largest hidden cost bleeding gas station margin.

Diligence notes

Verify the revenue figure above all else. Cash flow of $587,856 exceeding reported gross revenue of $840,946 is impossible for a normal operation, so demand fuel gallon reports, POS store sales, lottery statements, and three years of tax returns to establish real top-line and confirm the $587,856 SDE is not overstated.
Inspect the underground storage tanks. Three 10,000 gallon tanks carry real environmental and capital risk, so pull tank age, material (steel versus fiberglass), leak-detection compliance records, and any state DEP remediation history before committing, because replacement runs into six figures.
Confirm the real estate terms and value separately. The property is owned and can be leased or bought, so get an appraisal and clarify whether the $2.5M asking price includes the land or is operations-only, since that determines your true multiple and financing structure.
Validate the rack-zero supply agreement and branding contract. Review remaining term, minimum volume commitments, image and equipment obligations under the Citgo brand, and any penalties for debranding or transfer, as these constrain a new owner's flexibility.
Test the absentee cost structure claim. Only two full-time employees running a station this size warrants scrutiny of actual staffing needs, payroll records, and whether reported SDE already assumes an owner working the counter, so you are not double-counting the labor savings.
Confirm lottery, tobacco, and other licenses transfer cleanly. Massachusetts lottery agent status, tobacco permits, and alcohol licenses (if any) are location and owner specific, so verify transferability and timing to avoid a revenue gap at closing.

Source

Originally listed on BizBuySell. View original listing →