Sale Price of Convenience Store Business Transactions Dips

Median cost hits two-year low even as revenue increases

Steve Holtz, Editor in Chief, CSP Daily News

SAN FRANCISCO -- Convenience stores sold by BizBuySell hit a two-year low median selling price in the fourth quarter of 2012, according to the latest data presented by the online business market place.

"The median asking price for businesses for sale in the convenience store industry on BizBuySell was $150,000. … The median sale price of businesses in this category was $100,000," the service said.

The recent $100,000 median varies greatly from most of the previous seven quarters, when median sale prices reached more than $196,000 in the third quarter of 2011. Meanwhile, median asking prices remained more consistent, hitting $150,000 three out of four quarters in 2012.

Median sale prices of c-stores sold via the web service for the past two years were:

  • Q4 2012: $100,000.
  • Q3 2012: $125,000.
  • Q2 2012: 109,500.
  • Q1 2012: $137,500.
  • Q4 2011: $145,000.
  • Q3 2011: $196,175.
  • Q2 2011: $140,000.
  • Q1 2011: $133,000.

The businesses sold in Q4 2012 had median revenue of $678,406, the highest median reported for the two-year period. Median cash flow was $82,000. Owners asked for, on average, a revenue multiple of 0.31 and a cash flow multiple of 2.44.

Forty-three transactions were closed during the quarter.

Closed transactions are self-reported to BizBuySell by the representing brokers. Not all closed transactions are reported to BizBuySell, and it does not collect data from for-sale-by-owner transactions. Some transactions are excluded from example transactions due to confidentiality.

San Francisco-based BizBuySell lists more than 45,000 businesses in 80 countries for sale.

Steve Holtz, CSP/Winsight By Steve Holtz, Editor in Chief, CSP Daily News
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