Process: Post-Profit and Loss analysis phase - Conversation with Broker

August 05, 2025

Steilacoom 76 – Broker Call Talking Points

Opening & Positioning

“Thanks for taking the time. I’ve been reviewing the P&Ls and projections — I really like the location and operations, but I want to make sure the cash flow supports the purchase price.”

1. Validate Current Cash Flow

“Based on my review, normalized net income is around $624k/year, with debt service around $565k/year, leaving roughly net cash flow $82k post-debt — is that consistent with what you’re seeing?”
“Have any updated numbers come in for 2024/2025 that show improvement?”
“Are there seasonal spikes (summer tourist traffic, ferry traffic, etc.) we should consider?”

2. Explore Upside & Growth Levers

Fuel Supplier Incentives

“Does the current fuel supplier (76) offer sign-on bonuses or performance bonuses for gallon targets?”
“If I switch/renew contracts, is there upfront cash or per-gallon rebates I could capture?”

Volume Growth

“Is there room to expand convenience store or add new profit centers (lottery, car wash, Amazon locker)? Any past studies done?”

Lease/Property Terms

“Are there landlord contributions or maintenance credits negotiable?”

Operational Savings

“How much payroll could be reduced if I step in as owner-operator?”

3. Ask About Contract Flexibility

“Are fuel margins fixed under the current contract, or renegotiable?”
“If margins improve or gallons grow, can I renegotiate terms mid-contract?”
“Is there any penalty-free way to restructure supplier if I bring in more volume?”

4. Build Case for Price Flexibility

“At the current price of $5.9M, with today’s margins, debt service leaves very little safety margin.”
“If bonuses or contract improvements aren’t guaranteed, is there room to adjust price to reflect actual trailing cash flow?”
“Would seller consider price reduction, seller financing, or credit at close to bridge the gap?”

5. Close with Partnership Tone

“I’m motivated to move forward if we can close the gap on cash flow and risk.”
“If I bring you a clean, fast close with SBA pre-approval, would seller entertain flexibility?”
“What’s the best path to get this done?”

Extra Levers You Can Use

Ask for fuel inventory at cost (not market) at close — can save $20–50k.
Negotiate free rent for X months if property is leased.
Ask for price protection on fuel in first year (if supplier allows).
Request credit for needed repairs/maintenance (roof, tanks, pumps).
Earn-out structure: part of price tied to future gallon performance.

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