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American Business Brokers & Advisors Founder & President MERGERS & ACQUISITIONS BUSINESS VALUATIONS
OCTOBER 2025
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What Types of Buyers Buy Convenience Stores
3. THE ‘TRADE’ BUYER/ ‘REGIONAL’ BUYER – This is someone who is already in the business. The trade buyer is part of a small- to mid-size chain of convenience stores and is looking to expand their operation with the addition of more stores. Generally, they are also a fuel jobber for a major brand or brands and operate several convenience stores. The size of the trade buyer could range anywhere from 5–10 stores for a small trade buyer to larger ones in the 50-store-plus category. 4. THE ‘GENERATIONAL’ BUYER – This is a new type of buyer I had not recognized until recently. The generational buyer can be both a family and/or a financial buyer with deep roots in the convenience store industry. They have been in business for more than two generations and have what Warren Buffett has described as a long horizon. When a buyer has a long horizon in an industry that has long legs (meaning a business that is going to be around for a long time, such as the gas station/ convenience store business), they can afford to pay more for an acquisition than the other three types of buyers. Let me explain: The job buyer can only pay so much for a business because of the limited amount of money they have to invest. They cannot overpay for the business, or they will be out of business before they start if their costs of entry are too high. The financial buyer will have investors to answer to, and if they overpay for the business, Continued on Page 2 ...
Recently, I wrote about how the consolidation of the convenience store industry is going to continue at a faster pace, and if I am right, then there will be a lot of buyers of convenience stores. But what kind of buyers will the sellers be dealing with? Historically, the buyer of a gas station or convenience store has assumed the role of an owner-operator. However, in today’s business environment, individuals are growing into small companies, and many small companies are growing into larger companies with multiple stores. As a result, the profile of the convenience store buyer has evolved. I have always believed there were basically three different kinds of buyers, but I discovered I was wrong, and there are four different kinds of buyers. Almost every gas station or convenience store buyer can be placed into one of the following four categories. 1. THE ‘JOB’ BUYER – This is someone who is buying themself a job, which is not a bad thing. All of us need an income, and the job buyer has chosen the convenience store industry as their vehicle to produce the needed income to support themselves and their families. They are often the owner and operator of a single store, but more recently, the job buyer has begun to expand the number of stores they operate to accommodate the growing number of members of their
able to rotate unsold inventory from one store to another. They are very active in the daily operations of the store since the store is likely their only source of income. The success or failure of the store will also be the success or failure of their family. 2. THE ‘INVESTMENT’ BUYER OR ‘FINANCIAL’ BUYER – This is usually a publicly traded company, private equity group, or real estate investor. This buyer is looking to invest a portion of their financial portfolio in hopes of a favorable return on their investment. The investment/financial buyer typically has nothing to do with daily operations, and they generally have a professional management company or individuals from the convenience store industry manage the day-to-day operations for them and have these professional managers report back to the fund’s manager. Investment buyers will generally have over 50 stores and up to hundreds of stores throughout the United States.
family. The job buyer and their family may now own and operate anywhere between 1 and 5 stores, generally in close proximity to each other to help control expenses and labor, and to be
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Leo had always been the quiet one. In a room full of people, he’d hover at the edges, sipping soda and nodding politely when spoken to. He wasn’t unkind, just unsure. One day, after another lunch alone at work, he googled: “How to be liked.” He expected tricks: likable phrases, confidence hacks, or something magical. Instead, he found something simpler: Listen more than you talk. Remember names. Ask questions. Be kind without expecting anything back. It sounded … boring. No secret formula? How to Be Liked
Still, Leo decided to try it. The next morning, when he bumped into Maria from accounting, he said, “Hey, how was your weekend?”
People started greeting him first. He got invited to coffee breaks. One day, when a colleague left their charger at home, Leo lent his without hesitation. “You’re always so helpful,” she said.
She looked surprised but smiled. “My kid had a soccer game. We lost, but he scored his first goal.”
Instead of nodding and walking off, Leo asked more. “Is he into sports?” The conversation lasted three minutes. But the next day, Maria waved first.
Funny thing was, Leo didn’t feel like he was trying hard anymore to be liked. He wasn’t faking anything. He’d just stopped being afraid of connection.
At lunch, Leo noticed Sam sitting alone. Normally, he’d pass by, not wanting to intrude. This time, he asked, “Mind if I join you?”
Weeks later, at the office party, someone raised a toast and said, “To Leo, the guy who actually makes this place feel human.” Leo smiled, surprised. He hadn’t changed who he was. He’d just let others see him and made sure to really see them, too. He learned to ask questions and listen. It wasn’t difficult, but it changed his world. He realized then: Being liked isn’t about being flashy or funny or popular. It’s about being genuinely present . About caring. And for the first time, Leo didn’t feel like the quiet one in the corner. He felt like he belonged.
Sam blinked, then smiled. “Sure.” Leo listened. He learned Sam loved photography. He didn’t try to impress him or talk about himself. He just asked questions, listened, and laughed when something was funny. It became a habit. He remembered people’s names. Paid attention. Held the door. Shared snacks. When someone had a bad day, he didn’t offer advice. He just listened.
–Terry Monroe
Slowly, something shifted.
they will not be able to get the financial return they promised their investors and will quickly be out of business because their investors will make them sell off the business and give them their money back. They have to be stingy with how much money they can pay for a business. The regional buyer is someone who is already in the business, knows the costs and expenses of operating the business, is determined to get a good deal, and tries not to pay more than what it would cost to build a new store. They are limited in how much they can spend or how large a purchase they can afford by the money they can borrow or get from cash flow. The generational buyer is one who has been around the industry for over two generations, knows the business inside and out, and has a long-term plan for the business. One of the interesting things about a generational buyer is that it can be privately owned by a family or owned by a financial company. The reason it can be owned by both a family and a financial company is because of their vision of the convenience ... continued from Cover
store industry. They believe the convenience store business is going to be around for a long time; therefore, it is okay to pay what may seem to be overpaying for an asset because they know they are never going to sell the store (maybe rebuild it sometime), but they know the store will continue to generate a profit for many years to come. Each buyer has different operating procedures, motives, and goals for buying. As a result, they have different overheads and different standards for what is acceptable or not acceptable in terms of income and expenses or profits and losses. They also each have their own idea of what they think a convenience store is worth.
As the consolidation of the convenience store industry continues, it behooves one to know what kind of buyer may be knocking at their door.
–Terry Monroe
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SUDOKU (SOLUTION ON PG. 4) Take a Break!
Find out, with just three pieces of information about your business, how we can provide a convenience store operator with a market valuation showing what their convenience stores and businesses are worth in today’s marketplace. Best of all, it costs you nothing and it is entirely confidential. Simply send an email to Terry@TerryMonroe , and in the subject line, put “3 Point Market Valuation” Information is the key to everything. Don’t play a guessing game. Get the information you need. TERRY’S ‘3 POINT MARKET VALUATION’ TERRY’S QUOTES OF THE DAY “Forget past mistakes. Forget failures. Forget everything except what you’re going to do now and do it.” –William Durant, co-founder, General Motors “The way to get started is to quit talking and begin doing.” –Walt Disney “Even if you are on the right track, you’ll get run over if you just sit there.” –Will Rogers “The only place where success comes before work is in the dictionary.” –Vince Lombardi
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How to Be Liked
Discover Terry’s ‘3 Point Market Valuation’
Your Customers Are Your Best Marketers
User-Generated Content Can Boost Your Business When Customers Speak, Let It Echo
Marketing has always been challenging for business owners to master, but social media has provided an easier solution to their concerns. By creating a social media account for your business, you can communicate with your clients more effectively, see how they interact with your brand and products, and discover their concerns with your company. People love sharing their views on social media, which you can use to better your business. You can easily turn posts and messages about your business into quality user-generated content (UGC). You may wonder where to start if you’ve never used user-generated content. Chances are that you already have the materials you need to put together a quick UGC campaign. LEVERAGE REVIEWS AND TESTIMONIALS. What are your clients saying about your business? Look through your reviews on Google, Yelp, or any other place where people discuss your business. Pick your favorites and start using them in your marketing efforts. They’ll look great in your newsletter or website, but you can go even further by creating social media posts highlighting good reviews.
If you don’t have many reviews or testimonials, encourage your current customers to leave some. Offering a small discount or gift in exchange for a review will generate more interest. CREATE OPPORTUNITIES FOR INTERACTION. You can’t expect your clients and customers to do all the heavy lifting. You have to create opportunities for them to interact with you and your brand. One of the best ways to do this is by creating polls or asking questions on social media. Not only can this give you valuable information about your business, but it also has the potential to boost your brand awareness. As more people answer a poll, the more visible it becomes, introducing even more potential clients to your business. Another great way to accumulate user-generated content for your marketing campaigns is to create contests for your customers. Ask them to submit images of them using your product or service, or anything else related to your business. Offer a prize to increase participation. Just like that, you’re gaining more brand awareness while stocking up on images you can use for future social media posts or marketing campaigns.
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