What should companies know about the merger and acquisitions process in 2025?

May 17, 2025 By Brian Freeth 0 Comments

Selling your propane business is a major decision that requires thoughtful preparation, strategic planning and a clear understanding of your business’s value.

Whether you’re planning to retire, explore new ventures or simply feel it’s time to move on, being prepared can make the difference between a smooth, profitable transaction and one filled with delays and disappointments.

Being prepared can make the difference between a smooth, profitable transaction and one filled with delays and disappointments.

Here’s what it means to be truly ready to sell your propane business.

Know your reason why. Before putting your business on the market, be clear about your reasons for selling. Buyers will likely ask why you’re exiting, and having a well-thought-out answer will build trust and confidence. Whether your motivation is retirement, health, market changes or the desire to pursue other interests, a transparent and rational explanation helps establish a solid foundation for negotiations.
Get your financial house in order. Accurate, up-to-date financial statements are essential. You should have at least three years of income statements, balance sheets, tax returns and cash flow statements available for review. These documents help potential buyers assess profitability, understand revenue streams (like tank leasing, fuel delivery or service work) and evaluate overall financial health. Consider working with an accountant to ensure everything is clean, consistent and professional.
Understand the value of your business. A formal business valuation will give you a realistic view of what your business is worth. Valuation professionals consider assets (tanks, trucks, property), customer contracts, EBITDA (earnings before interest, taxes, depreciation and amortization), market position and growth potential. Knowing your business’s value helps you set an asking price and prepare for negotiations.
Organize your operations and documentation. Streamlined operations make your business more attractive. Buyers want a business that runs efficiently and doesn’t rely solely on the current owner’s personal involvement. Standardized procedures, employee training programs, customer agreements, maintenance records, safety certifications and regulatory compliance documents should all be organized and current. The more turnkey the business is, the more appealing it is.
Evaluate your assets. Take inventory of all tangible and intangible assets. Tangible assets include your fleet, storage facilities, tanks and equipment. Make sure everything is well-maintained and documented. Intangible assets might include your customer database, brand reputation, licenses and supplier relationships. These are all part of your business’s value proposition.
Plan for tax implications. Selling a business can have significant tax consequences, depending on how the sale is structured (asset sale versus stock sale, for example). Consult with a tax adviser to understand the impact and explore strategies to minimize your tax liability. Early planning can help you avoid costly surprises at closing.
Choose the right time and the right help. Timing can impact your sale price. Ideally, you want to sell when your business is performing well and market conditions are favorable. Consider hiring professionals like a business broker who specializes in propane, an attorney experienced in business transactions and a certified public accountant familiar with business sales. These experts can guide you through the process, help confidentially market your business and ensure you avoid common pitfalls.
Be ready for due diligence. Once a buyer is interested, they’ll perform due diligence to verify all the information you’ve provided. Due diligence includes reviewing financials, legal documents, contracts, permits, environmental issues and more. Being organized and responsive during this stage can speed up the process and build the buyer’s confidence.

Selling your propane business is about more than just listing it – it’s about putting in the work in advance to make it attractive, profitable and easy to transfer. With proper preparation, you’ll not only increase the value of your business but also ensure a smoother, more satisfying exit.

Whether you plan to sell next year or five years down the road, it’s important to have your mind and attitude wrapped around your plan to sell, your operations streamlined, and the proper reports and paperwork prepped and ready to share with potential buyers.

Brian Freeth is the owner of 1075 Consulting, which has partnered with Propane Resources as part of its mergers and acquisitions department. He can be reached at 866-LPG-1075 ext.1 (866-574-1075) or brian@1075consulting.org.

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