The propane industry continues to consolidate. Rising operational costs and labor shortages, as well as several consecutive mild winters, have led to more transactions. Finding a potential buyer usually isn’t difficult for propane companies looking to sell. It’s finding the right buyer that requires more thought and attention. Over the years, many propane companies looking to sell have asked me how they find a buyer that shares the same values, specifically as it relates to maintaining community involvement and their reputation.
Propane companies often serve as a cornerstone in the communities they support. Customers rely on them to ensure warmth, comfort and reliability, building trust over generations. These companies also provide local employment, with team members deeply embedded in the community, strengthening bonds through personal connections and shared values.
So, how do sellers find a buyer that will maintain community involvement and the local reputation that’s been built over decades as part of a new organization? Ahead are five areas to consider.
1. Emphasize Customer Focus
You know your customers inside and out, understanding their unique needs and priorities. Building a successful business has required putting customer service at the forefront, ensuring not only a high level of responsiveness but also consistently delivering quality experiences that foster trust and loyalty.
When considering a potential buyer, it’s essential to find a company that will uphold or surpass the service standards you’ve established. Look for a buyer committed to maintaining seamless service for your customers, including 24-hour emergency support available seven days a week. This dedication will ensure your customers continue to receive the exceptional service they expect and deserve.
2. Emphasize Safety as a Top Priority
Safety has been central to your business, embedded in every area — from employee training to safe transportation, tank installation and maintenance. As you consider a buyer, seek one with a strong, proven safety record. Look for a company with dedicated protocols, skilled emergency response teams and a commitment to the latest safety practices. This ensures your customers continue to feel confident that their safety remains a primary focus.
3. Prioritize Employees
Your employees are the backbone of your business, bringing expertise, dedication and care to their work every day. As you consider a buyer, ensure they value your team as much as you do, with a commitment to providing a positive work environment, growth opportunities and fair treatment. A buyer that prioritizes employee well-being will uphold the strong foundation you’ve built, keeping morale high and ensuring a smooth transition for everyone involved.
Additionally, take time to understand how employees can benefit from growth opportunities at the new company and communicate that to your employees as early in the process as possible.
4. Focus on Community
You are proud of your reputation in your community. Take a minute to reflect on all the times you and your employees participated in community service activities, sponsored events and rolled up your sleeves to make the community you live and operate in a better place. You and your employees make a difference. Understand how any potential buyer prioritizes community and participation in volunteering opportunities.
5. Highlight a Buyer’s Track Record
You know your track record with business and residential customers, employees, partners and suppliers. When considering a buyer, determine the company’s history with acquiring other propane companies. How successful has the organization been at retaining employees and customers? Make it a priority to speak with other owners/operators of previously acquired companies and ask them to share their experiences. Look for both red flags and indicators that the potential buyer has successfully integrated previous acquisitions in a way that appeals to you. Your reputation is important to you. You’ve built a model focused on employees, partners, suppliers, the community, and residential and business customers. Focus on these five areas to develop your own internal scorecard for every potential buyer. When you’re ready to sell your business, take the time to find the right partner that is dedicated to maintaining excellence, integrity and safety in every aspect of the business.
