How do I find a heating oil or propane delivery business for sale?
Heating oil and propane distributors are usually found through business listings, brokers, suppliers and neighbouring distributors, and many sell without a public listing. Once you find one, ask first about the customer count, how many accounts are on automatic delivery, who owns the tanks and what the supply agreement says.
These are small, local businesses with a loyal base of households that order every season. Some owners may prefer not to advertise a sale, because customers and drivers may be unsettled by a rumour. That means searching is partly looking at listings and partly letting the right people know what you want. Start by being clear about the kind of territory you can serve.
Where these businesses come up
Check listing sites and ask business brokers who work with distribution and service companies. Talk to equipment dealers and tank suppliers, who know which owners are thinking about leaving. Neighbouring distributors are another source, since a competitor may want to sell a route or an entire company. Tell each person what you are looking for in a few lines, and keep your enquiries confidential.
How to read a listing
A good listing says how many customers the company serves and how many are on automatic delivery rather than calling in. It should say who owns the tanks at customer sites, what trucks come with the sale, and whether a supply agreement is in place. If any of this is missing, treat it as your first list of questions. Our guide to buying a fuel delivery company covers what to weigh once you have a target.
- How many customers are there, and how long has the typical customer stayed?
- Which accounts are on automatic delivery?
- Who owns the tanks, and are customer agreements written?
- Is supply covered by a written agreement, and does it carry over to a buyer?
- How is the work split between heating season and the rest of the year?
What to ask first
Ask the owner why they are selling and who handles the customers day to day. Request a customer list with the sensitive details removed, then ask for the full list once you have signed a confidentiality agreement. To understand how the company earns, read how a fuel delivery company makes its money. Tank and fuel-handling rules belong to the regulator, so ask your lawyer which ones apply.
Related reading
15 pages on the same subject, grouped by topic.
Buying
- GuideBuying a fuel delivery company in Canada
- Expert answerHow does a fuel delivery company make its money?
- Expert answerWhat should I check before buying an office coffee service business?
- Expert answerWhat should I check before buying a uniform rental business?
- Expert answerWhat should I check before buying a barbecue store?
- Expert answerHow do I find out how a distributor’s delivery trucks and routes are run?
Due diligence
- GuideFuel delivery company due diligence
- Expert answerWhat environmental checks do I need before buying a business?
- ChecklistTrucking business buyer checklist
- Expert answerHow do I find out if a last-mile delivery business depends on a single retailer’s contract?
- Expert answerHow do I check an inn’s heating, hot water and laundry set-up?
Selling
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 03Business Development Bank of CanadaGovernmentEquipment valuation: How to do it
Deavo is an advertising and listings platform, not a brokerage, law firm or valuation firm. This page is general information, not legal, tax, accounting or valuation advice, and rules differ by province. Confirm anything you rely on with a qualified professional before you act on it.