Reality Check - Is it worth performing Due Diligence?

“Am I paying the right price?”

That’s the first question you should ask before becoming interested in a gas station listing. The truth? Many deals on BizBuySell (and even broker listings) are wildly overpriced — especially when real estate is included.

The good news: you don’t need to be a CPA to figure this out. A simple gut‑check formula can save you months of wasted energy (and thousands in mistakes).

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The Quick Reality Check

Here’s how to know if a station is even worth due diligence:

1. Check Fuel Margins

   • Gallons sold × cents per gallon (profit, not retail price)

2. Add Store Margins

   • Inside sales × 25–35% typical margin

3. Subtract Payroll + Expenses

4. Run SBA Loan Numbers

   • 10–20% down, 10% interest, 10‑year term (default assumption)

5. See if You’re Positive

   • Net profit should be solidly positive and ideally yield 10–20% cash‑on‑cash

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Why It Works

• Fast filter: You’ll cut 90% of listings instantly.

• Price sanity: Compares replacement cost (build new) vs. asking price (buy existing).

• Margin of safety: You’ll know if upside (food program, EV, car wash) is needed to make it work.

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Try the Spreadsheet

We built a free “Price Reality Check” calculator you can use right now:

👉 Open the Spreadsheet

How to use it:

• Follow the workflow, enter data into the input fields and watch the calculated fields update

• Plug in gallons, margins, payroll, and expenses

• See instant cash‑on‑cash results

• Request access if it’s view‑only (I’ll approve quickly)

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Next Step

• Run the numbers on 3–5 listings you’re eyeing

• Drop the losers fast (negative cash‑on‑cash)

• Focus due diligence only on the survivors

• Move to Phase 2: Deep Underwriting when a deal pencils out

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Stop guessing — start owning.
Every great acquisition starts with a reality check. Use the spreadsheet, run the math, and buy with confidence.