The U.S. economy is in its ninth year of expansion, typically much longer than average. Government policy is trying hard to extend this expansion, but strains are showing up in labor costs and availability, plus important materials shortages that are affecting inflation and, subsequently, interest rates. Combined with persistent upside oil price pressures, the gasoline and convenience store space is feeling these pressures on the bottom line. Fundamental uncertainties such as electric or alternative fuels vehicles, threats from internet retailers like Amazon and now WalMart, and ongoing regulatory changes present more challenges for the future.
Yet, Merger and Acquisition activity remains quite strong, reflecting a very wide range of purchase price multiples for both individual sites and total companies. Who are these buyers and what are the multiples being paid? Should you be a buyer or a seller? Should you buy or build new? How does this fit with long term company objectives, since you may be able to sell now for what you hoped to sell for five years from now, and without the economic and political guesswork?
Listen to Jeff Kramer’s M&A discussion on Thursday, May 31 at 1:00 Central TIme for answers to these questions, plus have the ability to ask questions for further discussion afterward.
Jeff Kramer joined NRC in 2014 as a Managing Director, bringing over thirty years’ operations and management experience in petroleum and convenience store retailing, plus extensive experience in refining, wholesaling and distribution. His most recent experience has been as Managing Member and CEO of Prima Marketing LLC, owner operator of 89 7-Eleven convenience stores in the Eastern U.S. Most of these locations were sold to 7-Eleven in 2012, with the assistance of NRC. Kramer’s background in refining, wholesale and distribution came at Total Petroleum and as CEO at Frontier Refining. Kramer has a B.S. Degree in Industrial Engineering from Ohio State University, an M.B.A. in Finance from S.M.U., is a graduate of the Stanford Executive Program and is a certified C.P.A. He is a long-standing member of NACS and of SIGMA, having served on its Board of Directors.
NRC Realty & Capital Advisors, LLC provides a full array of real estate and financial advisory services to the convenience store and related petroleum industries. NRC’s breadth of experience in the convenience-store arena includes portfolio evaluation and analysis; merger and acquisition advisory services, refinancing, recapitalization & sale-leaseback financing options. NRC’s sizable data base provides an excellent pool of buyers for any transaction, large, or, for smaller groups of stores, through its “buy one, some, or all structured sale program.
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