In this episode of Acquisitions Anonymous, we review the potential purchase of a butane filling business listed at $4.5 million.
In this episode of Acquisitions Anonymous, we review the potential purchase of a butane filling business listed at $4.5 million. Bill, Michael Girdley, and Mills, break down the deal's details, covering the financials, risks, and potential rewards. They keep the conversation accessible, making it easy to follow along whether you're a seasoned investor or just starting out.
We found this deal on BizBuySell. Here's the link
We're looking at a butane filling company based in Greenville, North Carolina. The business generates $1 million in cash flow and includes $500,000 worth of real estate. The asking price for everything is $4.5 million. This includes both the operations and the property, making it a substantial investment.
Here are the main financial points:
These numbers show a business that's currently profitable with tangible assets backing it up, which is a big plus for potential buyers.
A few key risks come up in the discussion:
Despite these risks, there are several upsides:
Bill D'Alessandro suggests securing long-term contracts with multiple customers to reduce the risk of losing major clients. These contracts should ideally cover the period of the SBA loan repayment.
Michael Girdley stresses the importance of thorough due diligence. This includes understanding the market, assessing competition, and ensuring the equipment and facilities are in good condition.
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