Gas stations in Illinois are complex assets valued on multiple components: fuel margin (cents per gallon × gallons), inside sales gross profit, car wash revenue if applicable, and — critically — the value of the real estate itself. Total transaction values vary widely from $300,000 for small rural stations to $3M+ for high-volume branded locations. SDE multiples of 2x to 4x are common for the operating business alone.
Branded vs. Unbranded
Branded fuel agreements (Shell, BP, Marathon, Citgo) provide marketing support and sometimes volume incentives but come with supply contracts that must be assigned or terminated. Buyers must review supply agreement terms carefully — some have lengthy commitments or volume minimums that affect flexibility. Unbranded stations have more pricing freedom but less brand traffic.
Environmental Due Diligence
Every gas station sale requires a Phase I Environmental Site Assessment at minimum, and often a Phase II if there is any indication of UST leakage or soil contamination. Illinois EPA records should be pulled early. Known contamination must be disclosed and may need to be remediated before a lender will fund the transaction.
Gas stations are often family businesses that have been held for decades. When structuring the sale, separating the real estate from the operating business can provide significant tax advantages and better financing options for both seller and buyer.