Selling a Gas Business

Most gas and oilfield services businesses are priced off the seller’s discretionary earnings, which are the profits a working owner takes out after adding back personal expenses. Multiples vary a lot because buyers price in cycle exposure, near-term fleet replacements, safety and claims history, and operator approval risk. Start with an estimate using Rejigg’s free valuation calculator, then adjust for what you will realistically spend to keep equipment billable and compliant over the next 12–24 months.

Most buyers value equipment based on what it can earn and how soon it needs money, not what it cost new. They will look at inspection status, mileage or hours, and what it takes to put a parked unit back to work. A unit that is “parked” with no clear repair plan often gets valued like a project. Put your fleet list, titles, leases, and maintenance records in one place early. Rejigg’s built-in data room keeps it organized without emailing files back and forth.

Sometimes. SBA lenders tend to like clean books and steady cash flow, and they get cautious when revenue is very cyclical or heavily dependent on one operator approval. For fuel distribution, they also focus on supply terms and working capital because receivables can balloon quickly when volume and prices rise. You can model payments and basic scenarios with Rejigg’s SBA loan calculator before you negotiate structure.

A well-prepared sale often closes in 3–6 months, and it can run longer when permits, yard issues, or operator re-approvals are involved. The slow steps are usually fleet inspection and maintenance records, insurance and claims, customer approvals, and environmental documents for any yard, tanks, or waste handling. You can speed it up by building your data room before going to market and running a tight buyer process. Rejigg supports this with buyer vetting, digital NDAs, and a deal dashboard.

No. Brokers charge 5–10% of the sale price for process work you can run yourself with the right tools and buyer access. Rejigg gives you pre-vetted buyers, digital NDAs, direct messaging, built-in scheduling, a secure data room, and offer comparison, so you can run a broker-free sale without the telephone game. Start with the finding buyers guide and build your process from there.

Start with what buyers request on the first diligence call: three years of financials, monthly year-to-date reports, tax returns, a fleet list with titles and leases, maintenance and inspection records, safety program documents and incident logs, insurance policies and claims history, key customer agreements or portal terms, and environmental permits, plus spill and waste records if you run a yard or operate tanks. Rejigg’s due diligence checklist pairs well with the platform’s built-in data room.

Many master services agreements require notice, consent, or re-onboarding when ownership changes. On the ground, the practical risk is a pause in work while the operator reviews the new owner, updated insurance certificates, and qualification status. Before you go to market, identify which document governs each major account, and confirm the steps needed for a sale. Keeping those notes and emails in Rejigg’s data room helps you avoid a scramble late in diligence.

Working capital is the cash tied up in daily operations, mainly accounts receivable, inventory, and accounts payable. In fuel distribution, receivables and inventory can swing fast with gallons and rack price, which creates real cash needs. Buyers often expect a normal level of working capital at closing so they are not paying the purchase price and funding your receivables. A practical approach is to calculate a normal range from the last 12 months and agree to a target during negotiation. See the negotiation guide for how to structure it.

An earnout means part of the price is paid later if the business hits agreed targets. In a cyclical gas business, earnouts show up when a buyer wants protection against a downturn or a customer drop. As a seller, you can run the business well and still miss the earnout because rigs stack or a completion program pauses. If you consider one, get clear definitions, short measurement windows, and decision rights that limit gamesmanship after closing. Rejigg’s offer comparison view helps you line up earnouts side-by-side.

Buyers want to know whether insurance is a stable operating cost or a renewal surprise. Expect deep questions on auto, general liability, workers comp, and pollution coverage when it applies to your work. They also look at large claims, open claims, and what you changed after a serious incident. A clean summary that matches customer-required limits goes a long way, especially when your service agreements push liability onto you. Keep policies, loss runs, and claim narratives in a controlled data room so buyers do not assume the worst.

Either can work, but buyers need confidence they can operate at that address for years. If permits, tank registrations, spill plans, or local approvals are tied to the site, a short lease can become a real problem during diligence. If you want to keep the property, bring a long-term lease with renewal options and clear responsibility for repairs and environmental obligations. If you sell it, be explicit about what stays and what goes. Rejigg’s prep guide covers packaging decisions like this.

Most sellers stage introductions to protect the accounts. Early, share anonymized customer concentration and proof of repeat work under NDA. Later, serious buyers meet key contacts once you trust their intent, and you have real deal terms on the table. That reduces the risk of a buyer fishing for customers or spreading rumors in the field. Rejigg helps by pre-vetting buyers, requiring digital NDAs, and letting you control what you share and when through direct messaging and scheduled calls.

Seller financing means you take a note for part of the price and get paid over time. In gas and fuel distribution, it often shows up when working capital is heavy or lenders reduce what they will finance because the business is cyclical. The trade-off is simple: you are taking credit risk on the buyer. If you offer it, focus on down payment size, collateral, and clear default terms, plus personal guarantees when appropriate. Rejigg’s offer comparison makes it easier to weigh a seller note against a higher headline price.

Bring evidence that supply lives with the company, not only in someone’s phone. Share supply point history, volumes, payment terms, allocation experience, and named supplier contacts. Buyers also like to see backup terminals or lanes that you have actually used, even if the margin is thinner. Put your pricing rules in writing so the buyer believes you can pass rack changes through quickly. Keeping these items in Rejigg’s data room helps buyers underwrite supply risk without guessing.

Taxes depend on whether you sell assets or sell ownership in the company, and how the price is allocated between equipment and intangible value. Trucks and equipment can trigger depreciation recapture, which can raise taxes compared to a deal that leans more toward goodwill. Most deals also require a purchase price allocation, and both sides negotiate it because it affects taxes. Talk to a tax professional early so you are not negotiating blind. Rejigg’s negotiation guide shows where tax terms usually appear in term sheets.

An LOI is a letter of intent. It lays out price and key terms before full diligence starts. In gas and oilfield deals, a strong LOI is clear about what assets are included, how working capital will be handled, and whether there will be an escrow or holdback tied to safety, claims, or environmental items. It should also spell out required customer approvals, the timeline, and how long exclusivity lasts so you do not get stuck. Use Rejigg’s deal tracking to compare LOIs side-by-side as they come in.

Many owners stay 3–12 months, but it depends on how operator-gated your revenue is and how much dispatch, safety, and customer management still runs through you. If approvals and key relationships are tied to your involvement, buyers may ask for a longer transition or a consulting agreement. You can usually shorten the ask by moving relationships to your team before you sell and documenting how dispatch, quoting, and field supervision work. Rejigg’s transition planning guide helps you put a clear plan around it.

From real diligence calls, the fastest deal-stoppers are usually surprises that are expensive to size: a fleet that will not pass inspection without major spend, claims history that threatens operator approval, a yard or tank setup that cannot be permitted or transferred cleanly, supply access that depends on the owner’s personal credit, or environmental issues with no clear boundary. Any of these can be workable when they are documented and priced in early. Deals get messy when they show up late. Rejigg’s data room and staged sharing help you surface the facts under NDA.