Convenience Store Ownership Transition (Buy/Sell)
How can a third party help with a smooth transition of ownership?
Inventory is a significant component value of your business. To ensure the inventory is valued accurately, an independent count is often utilized during ownership transition.
Monarch provides and unbiased objective count. Our tablet technology is available to both the buyer and seller, providing them with access to live inventory data being captured by the Monarch team.
For Kansas stores selling liquor, Monarch links the inventory results to the KS ABC-812 Form required for the transfer of alcohol from one license to another. The form is generated and provided at the conclusion of the count.
Best Practices for a Successful
Concerned you are overpaying for the business and putting unnecessary financial strain early in the new operation? Not getting the full value for the inventory in your store?
Have you ever purchased a used car? How can you be sure the operation of the vehicle is as advertised? How can you know about the “clink” in the motor that only surfaces in cold weather? How do you know if the brakes are in good condition and not ready for replacement? Unless you are a trained mechanic, for most of us it is impossible to know for sure. We rely on mechanics to help us with the inspection to be certain of what we are buying before we hand over a check. Business transitions are no different. You need a partner to act as your “mechanic” to help show you what is under the hood. You have a dream for this business. Your dream is defined in your financial model. To realize your dreams for your new business, you need to be certain that your financial model works which requires an accurate valuation of the inventory you have in your new store on day 1.
We're Here to Help with Convenience Store Ownership Transition
Much like an expert mechanic has the A/C pressure gauges, voltmeters, wrenches, code readers, and other specialty tools for their trade; Monarch has similar analytical tools to help diagnose inventory-related issues. We understand average market pricing of each product in the store. We understand the concept of buy-downs and how it affects the value of the cigarette inventory. We understand typical margins for the standard departments in a c-store operation. We have the tools to analyze the data quickly and provide transparency of the results to both the buyer and the seller. Our objective is to accurately reflect the proper value of the inventory so that both buyer and seller can feel good about the closing. We stand ready to help you achieve your dream for your new business acquisition.
- Establish Goals: First, we will work with the buyer and seller to understand goals and scope for the physical count.
- Establish Process: Next, we will recommend a process based upon best practices to align with the goals and scope.
- Automate: We will then use our state-of-the-art technology to automate the approved process and deliver accurate, transparent results to both the buyer and seller.
- Analyze: Next, any areas of concern will be reviewed with both buyer and seller to ensure both parties are comfortable with the valuation.
- Final Reports: Finally, professional reports in both electronic and hard copy format will be provided to both the buyer and the seller.
Your Inventory Service Questions Answered
Get answers to your most common questions from Monarch
We understand that ownership transitions are a fluid process. There are lots of moving parts and the inventory is just one small step. We will do our best to accommodate any changes.
Having an idea of the approximate inventory value gives our team a better idea of what to expect. It will also help us provide an accurate estimate of the total time and cost needed to capture the inventory. If that information is not available in advance, we will make assumptions based on the details you can provide in order to plan for the count.
This is up to you. You are our client but we won’t tailor our counts to favor one side or the other. It is important that all parties involved are present and aware of the inventory process. If there’s a dispute, we will recount areas on request from either party. Our final data will be a legitimate assessment of inventory value. We remain objective and neutral. It is what it is.
Let us know! We would be happy to return for another inventory count. If we do return, we will have access to the first count data and can compare current inventory levels with those from the transition inventory, giving you insights into the sales and movement.