Convenience stores are strategic places to serve tourists at all times of the day as a needed place to rest, fuel up, and grab food. Furthermore, for locals, they are the very place that make up the fabric of their communities. A place to grab coffee and say hello to your neighbors and even a place where your children get their first job.

It should not be a surprise that when 60% of convenience stores are single store operators, making the decision sell your store is difficult and emotional. Rest assured though that it is a great opportunity for other family business operators to grow their footprint.

As convenience store advisors, we know your competitive advantage is deciding to sell to another family-owned business. While others come into the situation with ‘smoke and mirrors’, other family business owners can come into the transaction with practical expectations because they understand family business dynamics and want to take care of the reputation you worked so hard to build. Here are some of the reasons why convenience store owners are selling:

• No Succession: Family business owners have determined that their children are not prepared to take over the business, do not want to take over, or they do not have anyone to take it over.
• Market Volatility: After decades of seeing the volatility with supplier pricing and interest rate fluctuations owners have determined it is time to start the next chapter.
• Tough Labor Market: Finding A+ employees can be tough, especially if you’re in a location with a limited labor pool. Owners have decided they no longer want the headache.

When looking to sell your first convenience store or tenth, it serves as a great opportunity for buyers! Here are three quick benefits to buyers:

1. Grow your local market share (and Increase gallons)
2. Expand into a new market
3. Diversify into a new business

As convenience store acquisition advisors, we know there is more than meets the eye when deciding to sell. Let’s talk about some key value drivers for convenience stores:

• Location: Is the convenience store located in an urban, suburban, or rural location?
• Accessibility: Is the store located at a controlled intersection? Highway exit? Main road access?
• Customer Demographics: Are the products and services aligned with the neighborhood demographics?
• Visual Appeal: Does the store (on the outside and inside), pumps, and canopy appear in good condition? Is the lot paved over without significant ‘pot-holes’?
• Branded or Unbranded Fuel: Is your fuel branded? Or unbranded?
• Safety and Compliance Records: What is the status of these records?
• Team Member Stability: What is the tenure of your team members?

Again, whether you are looking to sell your first convenience store or your tenth, getting a business valuation for your store or group of stores makes sense. As M&A advisors, we understand that when another business owner reaches out to buy your business it can become overwhelming. Meridian specializes in working exclusively with family business owners so we can guide you through the process. You want to provide enough clarity that an offer can be submitted but not so much that your competitor can use it against you. Where should you draw the line?

If you are looking to sell your convenience store, here are just some of the things we would review with you:

• “True” Earnings: What is one-time non-recurring income and not? Also do you have any expenses that would not continue with the sale of the business (For example do you provide fuel for any family members?)
• Seasonality: Some stores are affected more by summer (or even winter) travel season than others.
• Brand Contract: If there is a contract, how long is left and Is there a right of first refusal (ROFR)?
• Company Culture: What is the tenure of the employees? How is their safety record?
• Environmental: Have you had a Phase I and Phase II completed while owning the property? How long ago and what were the results?

As convenience store acquisition advisors, we understand that it can become overwhelming fast when you consider “what is a fair offer?”, add a short timeframe, and mix in other companies competing to win your store.

At Meridian our 2^nd core value is Simplify. As M&A advisors we simplify the complex. A convenience store business valuation is the best first step to get prepared for the nuances of the new potential operation and the acquisition process. I want to encourage you to reach out to Meridian so our M&A advisors can help bridge the gaps you might be missing and talk about next steps.