$550K
2.9x
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$1,600,000 Plus Inventory for the Ohio, Columbus, East Livingston Area Gas Station Business Only. Business and property can be purchased for $4,000,000 plus inventory. $180,000 average merchandise...
Why we like it
- Cash flow of $550,000 against a $1.6M business-only ask is a clean 2.91x, which is a fair price for fuel and c-store cash flow that does not depend on discretionary spending. The blend of fuel volume plus roughly $180,000 monthly merchandise sales gives you two revenue legs rather than a single fragile one.
- Gas and convenience is about as recession-proof as retail gets. Commuters still buy fuel, cigarettes, lottery, and drinks during downturns, and the inside store carries the margin while the pumps drive the traffic that feeds it.
- Being unbranded gives the operator flexibility on fuel sourcing and avoids restrictive jobber contracts and brand-mandated capex. This opens the door to either chasing the cheapest rack price for margin or negotiating a branding deal later if it improves volume.
- The seller offers a clear path to control the real estate at $4,000,000 total, which means a buyer can choose an asset-light operations play now or a full real-estate-backed acquisition that builds long-term equity in the dirt under a high-traffic corner.
How to improve it
- Audit the inside-store category mix in the first 90 days and reset planograms toward high-margin items like food service, hot beverages, and packaged snacks. At $180,000 monthly merchandise, even a two-point gross margin lift drops meaningful dollars straight to SDE.
- Negotiate fuel supply aggressively given the unbranded status. Shop multiple rack suppliers and lock favorable terms, since on this volume a few cents per gallon of improved buy cost compounds into real annual margin.
- Evaluate adding or upgrading food service such as a branded QSR, roller grill, or coffee program. Food carries the highest margins in the c-store world and increases trip frequency and basket size on existing traffic.
- Install or modernize loyalty and POS data capture to understand peak hours, basket composition, and dead inventory. Most independent stations run blind on data, and tightening shrink and slow movers alone can recover lost margin.
- Pressure-test the lease if buying operations only. Lock a long-term lease with capped escalators or seriously model the $4M real estate option, because a fuel operator without secure site control is one renewal away from losing the whole business.
- Add ancillary revenue lines such as ATM, lottery promotion, car wash partnership, or propane exchange. These are low-capex add-ons that monetize the same foot traffic you are already paying to attract.
Diligence notes
- Get the actual fuel gallons sold and per-gallon margin separated from merchandise. The $550,000 cash flow figure needs to be broken into fuel margin versus inside-store profit, because unbranded fuel margins swing with rack volatility and can flatter or hide the real run rate.
- Scrutinize the lease if pursuing the $1.6M operations-only deal. Term length, escalators, renewal options, and landlord identity determine whether you are buying a durable business or a depreciating contract on someone else's corner.
- Order environmental and tank assessments regardless of whether you buy the real estate. Underground storage tank liability, soil contamination, and EPA compliance are the silent killers in gas station deals and can dwarf the purchase price.
- Verify merchandise margins and shrink against the reported $180,000 monthly figure. Confirm whether lottery, tobacco, and ATM commissions are included in cash flow and check inventory accounting since the deal is priced plus inventory.
- Confirm the daily traffic count, competing stations within the trade area, and any planned road or zoning changes. A gas station's value lives and dies on location and through-traffic, so independently verify the volume drivers before trusting the seller's numbers.