Gas Station Appraisal
Gas Station Valuation
In the past, Mexican oil was in charge of authorizing the construction of a gasoline dispensing Service Station, however, it also established a policy that restricted a delimited sales area, in which no investor had the permit of the Government to build a gas station in said area, which ensured a market free of competition.
The energetic reform that the Government of Mexico stipulated in 2018, has allowed the opening to private capital, which has led to an increase in foreign direct investment for Mexico, and this returns the energy sector to a developing economic sector.
Within the gas station sector, there are ratios (pesos / liters sold and weights / load positions) that make it possible to obtain a first estimate that is approximated based on the type of gas station for sale, be it rural, urban, highway, etc. These ratios allow an initial idea of the value of the property, which is directly related to the volume of liters that the gas stations sell.
What is gas station valuation?
A gas station is defined as that establishment where the sale and supply of gasoline, or other types of fuel, to automobiles is carried out.
To carry out the valuation of a gas station, it is necessary to consider all the fixed assets that make it up, such as the land, special facilities, construction, machinery, furniture, etc. It is also important to keep in mind that this type of business belongs to a restricted market, in which there is little supply, which is why sales are made among investors who belong to this same economic sector.
An appraisal of a gas station is the process that estimates the value of this property at a certain date, based on its physical characteristics, location, and its use.
Why is gas station valuation important?
It is important to carry out this type of valuation, since it is useful to calculate both the initial value and the current value of the fixed assets that make up the gas station, which are important for making future financial decisions on the property in question.
Gas Station Valuation Methods
Currently, heThe sale of fuel has allowed businessmen to obtain a profit margin of around 6 % of the commercial volume, given this fact, Valuations carried out under the cost approach and income approach have become obsolete, since these approaches do not express a value that is reasonable for this type of assets.
According to the scenario where the valuations of the gas stations are related to the volume of liters that the gas stations sell, this allows us to conclude that the best approach to determine the value of the gas stations is analyzed as an economic unit.
This approach consists of comparing the gas station to be valued, with the other gas stations that share characteristics with the first, such as location, square meters of land, square meters covered by the construction, etc. This comparison will allow us to reflect on whether these gas stations will have similar values or not.
Why is it necessary to perform a gas station appraisal?
There are around 10,800 operating gas stations in Mexico that belong to the private sector. Since 2018, there has been an abrupt change in the brands that are dedicated to public distribution at service stations, which is why this service has become more relevant and Its correct development is vital to guarantee the correct transfer of the economic entity.
This type of valuations carried out with an adequate methodology, is useful to that person who is interested in selling, renting, investing or financing this type of property.