A valuation is more than just a number. Considering it impacts everything from a possible selling price to the way a succession, merger or acquisition is executed to potential tax consequences... it is the most important factor for getting the most money out of your business and preserving the value of your hard work and therefore…

Accuracy Is Vital!

     Sounds simple and straight forward enough, I mean, how difficult can it be? You just take a multiple of this year's earnings, factor in your assets and you are good to go, right? WRONG!

     Unfortunately, petroleum is a unique business that should not be treated like any mainstream average business (or any other commodity type business, for that matter).

Why Your Petroleum Business Is Different And Requires Special Attention...

     Value is not realized in a vacuum but in a marketplace that is constantly in motion. The value will fluctuate relative to what is going on in the general economy and more importantly in our particular industry (coffee, automobile or home prices can't compare in their wildest dreams to the fuel price fluctuations we are exposed to). So, a strong grasp of what is going on in the marketplace is a must.

     Our industry has the added difficulty of getting comps since there is no one centralized clearing house for the sale of petro businesses nor is there any requirement for sales or acquisitions to be made public (unless of course we are referring to publicly traded companies).

     If that weren't enough, you have multiple methods or formulas that can be used to derive a value for your business. Each one has its own strengths and weaknesses and the numbers they produce can be off and vary substantially. Choose wisely!

So, that leads us to the questions you need to ask before you engage the services of someone to
provide you with the accurate valuation
you are looking for:

"Do you have any experience and a track record
in my industry?"

     Meridian has been around for 2 decades and has worked with over 3300 companies. By specializing in petroleum, propane, lubricant and c-store operations we understand your industry and can value and market your business with far greater accuracy than other firms.

"What valuation method do you use?"

     Meridian knows the problems inherent in each method and uses a proprietary combination of multiple methods to provide you with the highest accuracy and confidence in your valuation.

"How can I be certain my business is really worth
the value you say it is?"

     There are no absolutes but over the years, Meridian has built what is undisputedly the industry's largest market value database of privately owned family businesses in the United States. Nobody has their finger on the pulse of our industry the way we do!

"What can you do about my 'special' situation?"

     That really depends on what you mean by "special"... often times, a business owner comes to us because they need special care with their family owned business, they are in the middle of a divorce, or have had an offer come knocking at their door.

     No worries, we've seen it all and have helped many smart marketers with whatever their special situation is. Please note that we do not dispense legal advice but can offer you expert guidance to handle your particular situation. For a complimentary and confidential consultation with one of our friendly expert advisors, please feel free to call us at 817-594-0546 Monday through Friday 8-5 CST.

     To get the most accurate information, you need to work with a company that understands YOUR business. Meridian offers precise valuation services and features the most extensive database of financial information in the petroleum industry.

     So, whether you are planning to buy, sell, merge, or just need to know your company's true worth - contact the industry leader… Nobody ever made a mistake using Meridian!

Don't be caught off-guard if a potential buyer comes knocking at your door!

Don't overpay for your next acquisition!

Don't insult a seller to the point he walks away with a 'lowball' starting offer!

Don't overpay the IRS!!

Schedule your complimentary and confidential consultation with one of our friendly expert advisors, at 817-594-0546 M-F 8-5 CST.

Frequently Asked Questions:

1. Why should I know my company’s value if I don’t intend to sell soon?
It’s smart to know and track your company’s value. You want to know conclusively that each year your hard work is paying off. For some marketers, knowing value is the best way to decide whether to get out or stay in. If committed to staying in, it’s also essential for planning growth and family transitions.

2. How does Meridian figure value?
We use several different valuation methods, but the method driving prices today and most accurate is called net present value of future cash flows. This method requires forecasting cash flow out into the future and then discounting back to today’s value.

3. How do you put a number on my trucks and equipment?
For most owners, all your trucks and equipment are needed to produce the company’s cash flow, so there is no need to value that separately from the business cash flows. The only time actual hard assets values come into use is if the company is having cash
problems or losses. Then, the hard assets may have added value.

4. If my real estate is owned in personal name, then rented to our operating company, can it still be included in my valuation?
Sure! You just let us know what the rent is that is being paid for that real estate, and we’ll add it back into our cash flow calculation.

5. How do you know how much my real estate is worth?
For most marketers, if the real estate is at highest and best use already, we’ll capture that real estate value via the company’s cash flow. If you happen to be fortunate enough to live in an area where dirt values are skyrocketing, it’s possible your dirt may be worth more than your business. If you are not sure about dirt values, we suggest you check discreetly with a local commercial real estate agent.

6. Who will you compare our company to?
Only marketers with operations similar to yours. For instance, if half of your fuel volume is delivered to dealers on contracts, the other half is commercial diesel, and you only own and operate two stores, we won’t compare you to 7-11 or The Pantry! Because our database is quite large, we’re also usually able to compare you with other similar marketers in your area.

7. How do you know the trends in my local area?
We don’t always have your exact area, but we can usually profile very tightly. For instance, maybe you are in a very rural farm area, and we’ve never valued your direct competitors, but we have valued many marketers in rural areas similar to yours, so we’ll
use that data. Because we don’t look at dirt values, our comparisons are volume and margin driven.

8. If we had a bad year last year, how will that impact my valuation?
That depends upon the reason for the bad year. If it was just a blip on the radar screen, and you’ve fixed whatever caused the problem, it will have little impact. If the reason is new competitors and it looks like your profitability will be impacted throughout the coming years, it will lower your value.

9. Can I combine two corporations or more into one valuation?
Yes. There some alternative ways to do that. If you only need a single number from Meridian, then you can have your CPA (or us for an extra fee) combine those operations. If you want to see separate values and the combined value, then we charge for two
valuations since it is doubling our work. Can I have a division or location separated out? Yes, but there may be extra work needed on our part, so please call our office to discuss your situation so we can give you a quote.

10. How can I explain to a buyer this value is accurate?
We recommend that any time a seller is negotiating with a buyer, he should never disclose his valuation number. Our valuation is your frame of reference, not to be used with the buyer. If you’d like to discuss price negotiation strategies that do work, call us!

11. What is your turn around time?
We’re busy! Valuations are processed in order of deposit receipt. You are getting the right number, not some cookie cutter formula. Remember, typical turn around time is four weeks but we offer a rush service if you needed it yesterday!

12. How is Meridian different from other companies that do this?
First, we have extensive industry knowledge and resources. This industry is all we do! Second, because we are not CPAs and therefore not bound by typical disclosure laws, that latitude means we can use our proprietary database and give you a truly accurate number you can count on.

Still have questions?

Schedule your complimentary and confidential consultation with one of our friendly expert advisors, at 817-594-0546 M-F 8-5 CST.

Or, complete this form and we will get back to you with answers.