SAN FRANCISCO -- The median sale price of convenience-store businesses sold by BizBuySell dipped in 2014, even as the average multiple of revenue and the average multiple of cash flow remained generally the same.
"While nationally the business-for-sale marketplace continued to recover in 2014, leading to improving small-business financials, it appears that the convenience-store sector is trailing somewhat,” Bob House, group general manager of BizBuySell, told CSP Daily News.
BizBuySell sold 266 c-store businesses in 2014 with a median sale price of $140,000, down from 350 c-store businesses sold in 2013 for an average $175,000. Median revenue and median cash flow also decreased from $595,000 to $540,000 and $104,172 to $94,000, respectively, while the average multiples of each remained about the same (0.36 of revenue and 2.07 of cash flow). These prices do not include real estate.
“While this may be perceived as bad news, it could also be that smaller-sized convenience stores were sold this year,” House said. “As we move into 2015, we expect small-business transactions to continue at a high pace, and as the economy continues to improve, so should the financial indicators of both convenience stores and small businesses in general."
San Francisco-based BizBuySell is the Internet's largest business-for-sale marketplace. Since 1995, BizBuySell has offered tools that make it easy for business owners and brokers to sell a business, and potential buyers to find the business of their dreams. BizBuySell lists approximately 45,000 businesses spanning 80 countries for sale at any time.
Closed Convenience-Store Transactions via BizBuySell
| Year | Number of stores | Median sale price | Median asking price | Avg. sales/asking ratio | Median revenue | Avg. multiple of revenue | Median cash flow | Avg. multiple of cash flow |
| 2014 | 266 | $140,000 | $150,000 | 0.89 | $540,000 | 0.36 | $94,000 | 2.07 |
| 2013 | 350 | $175,000 | $195,000 | 0.90 | $595,000 | 0.37 | $104,172 | 2.10 |
| 2012 | 244 | $120,000 | $150,000 | 0.88 | $460,000 | 0.38 | $81,100 | 2.20 |
| 2011 | 230 | $150,000 | $179,500 | 0.86 | $550,000 | 0.39 | $100,000 | 2.27 |
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.