impose price controls , not only on the new customers , but on all the buyer ’ s existing customers . As you might expect , that was one request the purchaser declined .
We met with the AG ’ s office and explained that six companies were serving the area and that there were little to no barriers to entry into the industry for other companies to startup . As a good friend once told me , all you need is a truck and knuckles to get into this industry . Knuckles knocking on doors was his form of marketing .
The AG ’ s office did not agree that there were almost no barriers to entry and told our client that if their only other choice was to go out of business and close the doors , then maybe they would consider approving the transaction . They requested a written plan stating that the company would cease doing business . The crushing of the dream continued .
After seeking legal advice , it became evident that it would be extremely expensive and drag on for an unnecessarily long period to fight the battle in court . Ultimately the AG ’ s office would not approve the sale and our clients were forced to stay in business for now . Their other option is to close their doors and liquidate their assets . In the end , the customers will likely end up with the same companies that the AG ’ s office said they could not sell to .
As a politician once told me “ I feel very strongly both ways ”. I understand government controls to protect against anti-competition ; however , it seems obvious to me that competition , in this case , will continue and who knows , maybe another Leon or Abraham is out there looking to buy a truck and knock on doors and achieve the American Dream . l FON
Photo by Aaron Burden on Unsplash
Steven Abbate is managing director , principal , at Cetane Associates , which provides financial advisory services to owners of propane and heating oil distribution businesses . www . fueloilnews . com | FUEL OIL NEWS | JUNE 2023 33