MOVING TO FLORIDA

 YOU WILL LOVE IT!

First, let's define "SDE" or Seller's Discretionary Earnings. SDE is defined as net income before deducting the primary owner's compensation and benefits, other discretionary, non-operating, or non-recurring income or expense, depreciation, interest, and taxes.


Business Value can be determined by the following:

Gas Station with a convenience store, 2 or 3 times the SDE, plus inventory. With Car Wash 2.5 to 3 time SDE, with garage/repair 1.5 to 2 times SDE. (Prove the numbers through gas receipts and store invoices)
Minimum inside store volumes. Figure $30.00 per 100 gallons sold per month. Example if a station does 60,000 gallons/mo the inside sales should be a minimum of $18,000/mo.


Note If a gas station does 150,000 gallons per month and has a gas margin of 10 cents per gallon and convenience store sales of 45K per month. (with profit margin on C store sales 25- 30%), this is an example of a good opportunity. 

"Rules of Thumb" for Purchasing Gas Stations