How do I check what a truck stop owner really earns?

A single profit and loss statement for a truck stop can hide a lot. Fuel, food, showers, parking and repairs each behave differently, and some may be run as separate businesses on the same site. The owner may also be filling several jobs without drawing a wage for them.

Start with the records for each line

Ask for monthly statements for each profit centre. For commercial diesel, ask for fleet-card or network statements and compare them to what the books show. For the restaurant, showers and parking, ask how sales are recorded and whether the tills, tickets and bank deposits agree. If one line is mostly cash, ask your accountant how to test it.

Account for round-the-clock staffing

Many truck stops stay open at all hours, which means night shifts, cooks, cashiers and perhaps security. Ask who covers the gaps when someone is sick. If the owner fills in, or the family works without pay, ask your accountant how that unpaid labour affects the earnings you are shown.

Find out what the owner really does

List the owner’s weekly jobs: ordering fuel, managing fleet accounts, supervising the kitchen, handling repairs, dealing with suppliers. Ask which jobs a manager could do and which depend on personal relationships. The answer shows how much of the income would stay with a new owner. See also which add-backs are legitimate when adjusting earnings.

Have a professional confirm it

Deavo does not give a view on what a business earns or is worth. Your accountant can review the statements, test the adjustments and tell you whether the picture holds together. Your lender will also look at the numbers in its own way.