An accurate and reliable filling station valuation, which a prospective buyer can trust, is imperative when you want to become part of this niche industry.
Many new filling-station dealers have faced the shock of not making anything close to the net profit per month anticipated or disclosed to them by sellers, brokers, or agents.
Undisclosed costs and expenses – not known to non-industry experts doing filling station valuations – are the biggest reason for the above.
A proper filling station valuation must be done on twelve months data to ensure all seasonable fluctuations are taken into account.
A proper filling station valuation must be based on historical volumes and turnovers, current expenses, and margins. No cognisance must be taken of potential or promises.
OFFER TO PURCHASE
An offer to purchase will follow after the valuation of the filling station is done and the value of the goodwill is agreed on by both parties.
Finmil can also assist in the offer to purchase, ensuring that all the suspensive conditions needed to safeguard the buyer are accounted for, such as:
- Performance verification on a proper financial due diligence;
- Completion of a proper risk due diligence;
- Approval of the buyer by the oil company; and
- Approval of the Department of Minerals and Energy and granting of a retail license to the buyer.