How to Determine When It's Time to Sell

Dustin Shafer, Director of Business Development, Legacy Energy Consulting

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.