how do you value a convenience store

In Selling Property - Asked by Robert N. - Apr 26, 2014
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Scott A.
Charleston, SC

Value of all inventory, including what's in the ground at time of close.
Comps relative to # of MPDs, age of tanks in the ground, branded fuel requirement, and that ever so important location, location, location; Interstate Exit, Retail center at signalized corner, etc.

Apr 28, 2014
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Anthony C.
Santa Barbara, CA

A gross sales multiple is 1/6-1/4 of gross sales. And EBITDA multiple is generally more reliable but the range is wider, 3x to 5x. Also, EBITDA is more difficult to accurately calculate because of the owner's compensation, or lack thereof.
You need to consider whether the inventory is included, the real estate, assumable lease and whether there is a national brand ID.
TEDESCO Appraisal & Valuation
Santa Barbara, California

May 23, 2014
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Ed B.
Fernandina Beach, FL

Look at P&L/Income, then determine best use of site. If tanks, then look at environmental and feasibility of continued operation....surrounding properties, change to another use like drive through. Is it on the list for govt paid removal or remediation? Again, begin with determination of best or continued use as best use.

Jul 3, 2014
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