What You Need to Sell a Service Station
1. Can Sage Business Sales sell both the business and the freehold?
Yes! We can assist with the sale of:
✓ The business only
✓ The freehold property only
✓ Both together
Each type of sale has different considerations, and we guide you through the process to achieve the best outcome.
2. How is a service station assessed for sale?
We perform a comprehensive market assessment to determine the true value of your business. Factors considered include:
✓ Average fuel litres sold and CPL (cents per litre) margin achieved
✓ Store revenue and average gross margin
✓ Three years’ adjusted profit and loss statements
✓ Lease tenure and annual increases (applicable for business sales only)
✓ Location (metro, regional, or rural) and local demographics—this significantly impacts property value
✓ Age of buildings and infrastructure
✓ Tank types, capacities, and age
✓ Equipment, tanks, and other infrastructure
✓ Competition in the retail area
✓ Branding, including whether the station operates under a brand and any supply agreements in place
✓ Market demand for fuel retail and convenience retail
A thorough market assessment ensures the maximum price possible and sets realistic expectations for buyers.
3. What financial information is required?
Buyers typically request:
✓ Three years’ adjusted profit and loss statements
✓ Key performance metrics (fuel sales, CPL margin, store revenue)
✓ Any add-backs or adjustments for owner-specific expenses
This information helps buyers make an informed decision.
4. What environmental assessments are required?
Service stations must comply with environmental regulations. Key assessments include:
✓ Environmental Site Assessment (ESA): Evaluates potential contamination or historical environmental risks
✓ Groundwater testing: Confirms that fuel or chemical storage has not impacted the surrounding water
✓ Tank and pipework testing: Ensures no leaks or deterioration in underground storage tanks and associated pipework
These assessments provide buyers with confidence and reduce future liability.
5. What is an Information Memorandum (IM)?
The broker prepares an IM before listing and includes all information a buyer needs to make a purchasing decision:
✓ Business performance
✓ Lease details (if applicable)
✓ Environmental compliance
✓ Equipment and infrastructure
✓ Location and demographics
✓ Branding and supply agreements
Note: Before a buyer receives the IM, a confidentiality agreement (NDA) must be signed to protect your information.
6. How long does the sale process take?
The timeline depends on the type of sale, market conditions, and buyer readiness. Typically, service station sales take several months from listing to settlement. Prepping the business and documentation can significantly speed up the process.
7. How do you handle competition and market positioning?
We analyse competition in the retail area, considering other fuel stations, convenience stores, and local retail trends. This allows us to:
✓ Position your business effectively
✓ Highlight key selling points to attract buyers
✓ Set realistic pricing expectations
8. Can you assist with getting a business ready to sell?
Yes! We help owners prepare their business, including:
✓ Reviewing financials and three-year adjusted P&L statements
✓ Advising on operational improvements
✓ Ensuring compliance with environmental and regulatory requirements
✓ Preparing the Information Memorandum (IM)
Preparation reduces stress and maximises sale price.
9. Why should I use Sage Business Sales to sell my service station?
With years of experience in fuel retail, convenience stores, and small business sales, we provide:
✓ Deep industry knowledge
✓ Proven sales strategies
✓ Access to a network of qualified buyers
✓ Guidance on compliance, environmental testing, and market assessment
✓ Expertise in both business-only and freehold sales
We manage the process end-to-end, helping you achieve the best result with minimal stress.
Ready to sell your service station?
Let Sage Business Sales guide you through the process. We prepare your business, handle all assessments and documentation, and connect you with qualified buyers.
Contact us today to arrange a confidential discussion on selling your service station:
📞 Patty Taylor: 0419 363 635
📧 Email: patty@sagebusinesssales.com.au
