Mercer Capital’s Convenience Store Industry newsletter is a quarterly publication. Each issue includes a segment focus (motor fuels, grocery stores, alternative fuels and consumer transportation and food services). Also included in every issue is a market overview, a review of recent M&A activity, and more.
The segment focus of the most recent issue is Motor Fuels. Excerpting from the discussion:
EBITDA multiples were down slightly for convenience stores and fast food enterprises but up slightly for grocery store operators. Multiples for public c-store operators fell from 8.5x EBITDA at the end of the third quarter of 2014 to 8.1x at the end of the fourth quarter of 2014.1 Despite the decrease, c-store multiples remained above their five-year average (7.6x).
More important than the slight downturn in the multiples is the widening of the range of multiples. This widening is indicative of the volatility and uncertainty of fuel markets during the fourth quarter.
This issue also includes the special supplement Fairness Opinions: Evaluating a Buyer’s Shares from the Seller’s Perspective.
To read the entire write up, download the newsletter (pdf) here.