Branded Gas Station & C-Store, Tallahassee FL (Real Estate Included)

$4.0M

Revenue

$685K

SDE

5.8x

Multiple

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Full Editorial Writeup

This is a branded gas station and convenience store in Leon County, Florida, sitting on over five acres along a major county highway surrounded by residential and commercial development. The asking price of $4,000,000 includes the underlying real estate and a 2,500 square foot updated building with four double-sided MPD pumps that also dispense diesel. Inventory of roughly $125,000 is priced on top of the asking figure.

The economics are driven by two profit centers. Inside merchandise runs about $140,000 per month with the higher-margin mix typical of convenience retail, and fuel moves roughly 60,000 gallons per month at an unusually strong average of 45 cents per gallon. Supplemental income comes from lottery, ATM, cigarette sales, and various vendor rebates and commissions, which are pure-margin dollars that add up quickly at this scale.

Stated cash flow is $685,000 against $3.95M in revenue, and the seller cites low competition in the trade area plus a short-term supply agreement. The listing is one of four stations owned by the same seller that can be bought as a package, which opens a roll-up angle for a buyer with capital. This is explicitly pitched to a hands-on owner-operator or family, not an absentee investor.

Why we like it

Earnings quality is anchored by real estate ownership and dual profit centers. The $4M price includes land and building on five-plus acres, so a meaningful slice of the multiple is hard asset rather than goodwill, and the 45-cent-per-gallon fuel margin is well above typical branded-station economics that often run 15 to 25 cents.
The moat is location and land. Sitting on a major county highway surrounded by both residential and commercial density with stated low competition gives this site defensible traffic, and controlling five acres of frontage limits the risk of a competitor opening next door.
Fuel and convenience are recession-resistant staples. People buy gas, cigarettes, lottery, and snacks in every part of the cycle, and the rebate, ATM, and commission income provides diversified, sticky cash flow that does not evaporate in a downturn.
The operator advantage is a clear roll-up path. This is one of four stations under common ownership available as a package, so a buyer with capital can acquire scale, consolidate fuel supply and back-office costs, and negotiate better jobber terms across the group.

How to improve it

Renegotiate or replace the fuel supply agreement immediately. The listing flags a short-term supply agreement, so lock in favorable rack pricing or shop the volume to competing jobbers to protect that 45-cent margin before it resets against you.
Rebuild and reprice the inside merchandise mix. At $140,000 monthly inside sales, small gains in food service, beverages, and private-label margin drop straight to cash flow, and adding hot food or a quick-serve corner can lift both traffic and per-visit basket size.
Audit and expand ancillary income streams. Lottery, ATM, and rebate commissions are pure margin, so confirm you are capturing every vendor rebate, add a second ATM if traffic supports it, and evaluate car wash or air/vacuum add-ons on the five-acre footprint.
Extend or optimize operating hours based on traffic data. Pull the point-of-sale sales-by-hour report and confirm whether extending to 24 hours or tightening low-volume windows improves labor-adjusted contribution.
Pursue the four-station package for supply leverage. Buying two or more of the seller's stations lets you consolidate fuel purchasing, insurance, and management overhead, spreading fixed costs across more gallons and improving blended margins.
Formalize labor and management to reduce owner dependence. This is pitched to a hands-on operator, so document processes, hire and train a reliable site manager, and build a shift structure that lets the business run without the owner at the counter every day.
Develop the excess acreage. With over five acres and only a 2,500 square foot building, evaluate outparcel leasing, additional fuel positions, or a QSR pad to monetize unused land and add a second income stream.

Diligence notes

Scrutinize the fuel margin claim. A 45-cent-per-gallon average is far above branded-station norms, so pull three years of fuel purchase invoices and pump sales reports to verify the spread is real and sustainable, not a temporary pricing window.
Verify the real estate value and environmental status. Confirm the land and building are actually included at the $4M price, obtain a current appraisal, and order Phase I and Phase II environmental assessments plus tank tightness and compliance records given the underground storage tank liability.
Reconcile the $685,000 cash flow to tax returns and Z-tapes. Request three years of federal returns, monthly point-of-sale reports, and fuel and lottery statements, and confirm whether the $685K is true SDE or an add-back-inflated figure before accepting the 5.84x multiple.
Investigate the short-term supply agreement terms and branding obligations. Understand when it expires, any volume commitments, image or reset capital requirements from the brand, and whether renewal pricing will compress the margins the deal depends on.
Confirm competition and traffic assumptions. The listing claims low competition, so independently verify nearby station count, planned road or development changes, and traffic counts on the county highway that could either help or hurt future volume.
Clarify the package deal economics. Since this is one of four commonly owned stations, request the financials on all four to assess whether the seller is bundling a strong site with weaker ones and to price any multi-station acquisition correctly.

Source

Originally listed on BizBuySell. View original listing →