LP Gas, May 2010
1200 1000 800 600 400 200 0 U S Winter Heating Degree Days population weighted e A C Q U I S I T I O N S October November December January February March ago is not repeatable Kaminski says While they may think that now is the time to sell its not necessarily the way a buyer is going to view it Buyers are not going to look at that one year it will be adjusted and modifi ed for the long term performance of the business AmeriGas values a company on reputation safety and training history the concentration of its residential heating business whether the seller owns its equipment strength of its customer base and the state of its accounts receivable department Kaminski says The number of gallons AmeriGas seeks to acquire each year varies but many of the companies fall in the 1 million to 3 million gallon range he adds When we evaluate a business as most MLPs do we look at the cash fl ow that business will generate Kaminski says We assume when we do that the assets are in place Sometimes the independent marketers tend to think about the business in asset value when in reality were looking at cash value Every propane retailer has a different reason for selling his business says Harold Van Derveer an acquisitions consultant for Heritage Propane who sold Van Derveer Gas to Heritage in 2006 But one thing is certain That decision is always accompanied by strong emotions especially in a family business that spans multiple generations Van Derveer Gas had been family run since 1950 Your employees are your family and most of your friends are within the industry Its almost like divorcing your family says Van Derveer who sought more time with his family including his grandchildren All the way around it was the best thing to do for our employees as well as for the family LPG National Oceanic and Atmospheric Administration National Weather Service 2006 07 2007 08 2008 09 2009 10 2010 11 Normal When it comes to installing or removing any size residential propane storage tank the EZTC 206 from Renaldo Sales makes it easy More stability Greater power Unmatched traction Requires just one operator Get more information at www renaldo org Renaldo Sales Service Inc North Collins NY 800 424 5564 Manufactured and Distributed in the USA www LPGasmagazine com May 2010 LPGas 21
You must have JavaScript enabled to view digital editions.
