Presentation Highlights

Valuing and Acquiring a Propane Business

Update July 2022 | Cetane Associates’ Tamera Kovacs and Joe Rosengrant recently spoke at the Minnesota and Mid-States forum.

This presentation addressed several key elements of valuing and acquiring a delivered fuels business. It is not comprehensive yet gives owners essential data points to contemplate in their process.

Key take-aways for owners considering making an acquisition:

  • Reasons to Buy:

    • Acquisition is the fastest way to grow your business
    • Acquisition opens the door for diversification
    • Above market return on investment (ROI) and return on equity (ROE)
    • Great for company morale and to gain skilled employees
  • Key Points in Evaluating the Seller:

    • Geographical
    • Financial information
    • Product and service mix
    • Employees
    • Property purchase/lease
    • Customer demographics
    • Cultural fit
  • Preparing to Buy a Business:

    • Meet with your bank
    • Develop relationships with owners
    • Talk to vendors
    • Contact industry brokers/advisors
    • Advertise
    • Search the Internet
  • Business value is based on Operating Income (EBITDA)

    • The 3 EBITDAs
      • Owner’s EBITDA — from financial statements
      • Adjusted EBITDA — adjusts for non-recurring revenues and expenses
      • Buyer’s EBITDA — adjusted EBITDA with synergies and adjusted expenses
  • What’s typically included in the Purchase Price?

    • Included
      • Customer list
      • Propane tanks in the field
      • Intangibles
      • Vehicles
      • Furniture, Fixtures, & Equipment
      • Real Estate (if purchased)
      • AR
    •  Excluded
      • Current assets (cash, non-company inventory)
      • Liabilities (AP, notes payable)
      • Agreed upon select assets

These are brief highlights from a 21-slide Powerpoint presentation. We invite you to attend future seminars at regional conferences around the country.  Please contact us for a confidential consultation at https://cetane.net/contact-us/

Next up: We’ll see you at the Northeast Propane Show in Worcester, MA and the HEAT Show in Providence, RI.


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We were very pleased to have such a knowledgeable and experienced company in our corner with the team at Cetane. It was obvious that they knew the best process and how to get the ball over the goal line. Their advice throughout the process was greatly appreciated and we thoroughly enjoyed working with them.

— Steve Lombardi, Brodeur’s Oil, Moosup, CT