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SAN FRANCISCO — The past year proved to be good times for convenience store operators looking to sell their businesses.
According to BizBuySell.com, c-store operators both asked more and received more for their properties last year, compared to 2014. In 2015, c-store operators asked for a median sale price of $187,000 and received a median sale price of $170,000. This was a significant rise compared to 2014, when c-store retailers requested a median price of $150,000 and received a median price of $140,000.
The fourth quarter of last year was the best time to sell a c-store property. In that quarter, c-store operators asked for a median sale price of $257,500 and received a median price of $235,000. This was a huge lift vs. the same quarter in 2014, when c-store retailers requested a median price of $169,000 and received a median price of $150,000.
“While nationally, the number of small-business transactions declined 3.6 percent year over year, convenience stores experienced a 6-percent increase in businesses changing hands,” said Bob House, general manager of BizBuySell. “Strong business financials, including a nice 12-percent jump in median revenue and a 6-percent higher median cash flow, helped convenience store owners ask and receive more for their businesses.”
Last year also saw a number of other increases from a c-store standpoint. The number of c-stores sold via BizBuySell in 2015 came in at 282, a 16-store increase year over year, the company reported. Also, the median revenue of convenience stores jumped significantly from $540,000 in 2014 to $602,500 last year. The median cash flow improved by $6,000 year over year to $100,000 in 2015.
As for the new year ahead, House said a number of factors could affect the 2016 mergers and acquisitions environment.
“Buyers and sellers entering the market in 2016 should keep an eye on current and upcoming issues such as the presidential election, rising health care costs and potential minimum wage hikes and determine how, if at all, these changes could affect exit or acquisition strategies,” he said. “However, overall, indicators continue to point toward a healthy market for buying and selling convenience stores.”
San Francisco-based BizBuySell.com is the Internet’s largest business-for-sale marketplace.