CASE STUDIES

Granted, this was an extreme situation, however Chad Pendill owner of Legacy Energy Consulting was able to navigate a successful closing through an extreme event.

This particularly unusual challenge arose for Legacy Energy Consulting when, after two months of marketing the business and finalizing an offer with our preferred buyer, the owner passed away just two weeks after the agreement was signed. This left both our team at Legacy Energy Consulting and his family responsible for completing due diligence and seeing the deal through to a successful closing for the propane business that Legacy Energy Consulting was contracted to sell.

Several factors contributed to successfully closing the sale under such circumstances. Having a knowledgeable business broker who could guide everyone through complications proved invaluable. Selecting the right buyer also made a significant difference; many prospective buyers might have withdrawn following such a major and potentially disruptive event. Fortunately, our chosen buyer responded with integrity, helping expedite the closing process to bring closure to the family, staff, and customers.

While not every sale is marked by such dramatic hurdles, this case highlights the importance of partnering with an experienced, reputable company like Legacy Energy Consulting when selling your propane business. The industry experience of Chad Pendill really played an important role as Chad had to navigate a variety of emotions from all parties and still bridge the gap between the buyer and the seller during these unfortunate set of circumstances that no one could have planned for.

Accurately assessing the market value of your propane company is a critical step when considering a sale. Legacy Energy Consulting has successfully facilitated numerous transactions for propane businesses, often revealing valuations that exceeded owners’ initial expectations.

Chad Pendill, owner of Legacy Energy Consulting, recently shared an illustrative case. A propane company approached Legacy Energy Consulting to request a business valuation for banking purposes, as he was evaluating the acquisition of a local competitor and required an updated valuation of his own business for his financing arrangements.

Upon reviewing the comprehensive valuation prepared by Legacy Energy Consulting, the owner was surprised by his company’s current market value. Following further consultation with Chad Pendill, he chose to pursue the sale of his own company rather than acquire another.

Legacy Energy Consulting managed the project, and within approximately six months, completed the sale at a price consistent with the original valuation that was provided.

In 2010 I founded Phelan Gas Company, a propane delivery business serving residential and commercial customers across Southern California. What started as a small operation with one truck and a small bulk plant in Phelan grew steadily over the years into a successful company with over 3,500 loyal customers. I’m proud of what we built—a reliable, customer-first business rooted in community and hard work.

By the mid-2020s, organic growth had naturally slowed. We had captured a significant share of our local market, which made further expansion challenging without pursuing acquisitions. I began exploring the idea of buying a small competitor to keep scaling the business.

That’s when I reached out to Legacy Energy Consulting for an independent valuation. I wanted an objective view of what my company was truly worth before committing more capital and risk to grow the business. Chad and Tyler Pendill handled the valuation, and when he shared the results, the number was eye-opening—far higher than I had anticipated. Suddenly, I had to ask myself a tough question: Was it smarter to invest heavily in an acquisition, or was this the right time to consider selling?

After careful thought, I decided to put Phelan Gas Company on the market. Several factors influenced my decision. Operating costs were rising sharply—labor, equipment, and especially insurance. California’s business environment was becoming increasingly difficult, with regulatory pressures and a heavy litigation landscape that added real risk to owning and operating a propane company. When I ran the numbers on the ongoing risks versus the opportunity to exit at a strong valuation, selling made the most sense.

I entrusted Legacy Energy Consulting with the entire sale process. Chad and Tyler Pendill marketed the business discreetly, identified qualified buyers, negotiated terms, and guided us through due diligence. The transaction moved efficiently and closed in approximately nine months from start to finish.

Today, I serve as Director of Business Development at Legacy Energy Consulting, where I help other propane business owners navigate valuations, growth strategies, and exits. Looking back, getting that initial valuation was the turning point—it gave me clarity at a critical moment and allowed me to make a strategic decision that aligned with both my personal and professional goals.

If you’re a propane company owner wondering about your options, I highly recommend starting with a professional valuation. It might just change the way you see your future, the way it did for me.