Fine-tuning your C-Store Operations for Growth and Acquisition
Every day, we see more and more announcements of mergers and acquisitions within the convenience store channel. Convenience Store Decisions, an industry trade publication, tracks c-store acquisition activity closely. Merger and acquisition activity has been especially-high in the last 3-4 years. You can read more about recent industry activity at: https://csnews.com/mergers-and-acquisitions?eiq_2_end=24.
Fortunately, many convenience store operators have been able to obtain lucrative prices for their wholesale and/or retail businesses. There are many reasons that operators sell. These decisions can include economic factors, a desire to retire or lack of successor planning/no interest to continue operations within the family, pending competitive activity, the high cost of regulatory upgrades or EMV, and the recent roller-coaster ride due to the Covid-19 Pandemic. Managing through Covid-19 has also left many operators simply burned-out from the stress of ongoing business operations, trying to protect their associates and customers from the virus, dramatic revenue decreases, the EMV deadline, and the volatility of the fuel market overall. For those companies that have made their way through the fog, “growth” is often at the top of their list of future goals.
Whether you are on the selling or buying side, a major question is “How well is your company positioned for merger or acquisition?” We have put together a few suggestions on operational areas to consider should you be getting ready to “grow” or plan to build up your business to obtain the highest price possible. In addition, with many regional operators run by family members over multiple generations, are you ensuring that you are leaving your faithful associates in a good place as they prepare to take on more responsibility or grow with the new ownership? This dilemma keeps many family-operators up at […]