Listing ID: 66621
Business Overview
This is a very well-established septic service and portable restroom rental company with a strong reputation for quality & superior customer service. The business currently services Walla Walla County, Columbia County, and Umatilla County in Northeast Oregon. The business services are split almost 50/50 between septic services and portable restroom rentals. The business is known in its market for timely follow-through, reliable service, and fair pricing.
The company’s septic service division works on both residential and commercial projects including new septic system installations, system repairs, system inspections for real estate lenders, and septic system pumping. The business also supports several hundred portable restrooms for rent on a weekly, monthly, long-term, and even a weekend basis for special events. The most common uses for the portable restroom are agriculture applications, construction projects, and weekend weddings and parties. The common portable restroom rentals generally use the standard units, with the deluxe units are the most popular for weddings and special events. The average life of the portable restrooms is 25-30 years. Every portable restroom in use beyond one week is cleaned & maintained by the company on a weekly basis.
The business sale includes (3) – 3/4-ton trucks; a Kenworth Pump Truck; & a pump trailer. The sale also includes (23) – single trailers for the deliveries of the restrooms in the vineyards, orchards, and farm fields along with (4) – double trailers, and a polyphon trailer made to haul 10 portable restrooms for special events.
The business could generate additional revenues by adding more portable restrooms and by expanding septic system services to include de-rooting drain fields. Other natural areas of potential expansion could include the rental of temporary fencing and/or office trailers.
The business is centrally located in its service area. The real estate lot is 12,880 sq. ft. enclosed by a 6’ chain link fence. The storage and equipment repair facility on the lot is a 2016 sq. ft. pole building with (4) – 12’ sliding door bays. The Seller also owns the real estate and would be agreeable to entering into a long-term lease with a qualified Buyer at market rates plus NNN charges. The Sellers would also consider selling the real estate bundled with the business for an additional sum of $350,000. The Sellers are not interested in selling the real estate without also selling the business.
The lead business broker at IBA for this company is Bill Southwell. Mr. Southwell can be contacted directly at (509) 907-9406 or bill@ibainc.com.
Financial
- Asking Price: $565,000
- Cash Flow: $155,000
- Gross Revenue: $560,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
The seller will provide an appropriate amount of transition training/consulting to smoothly facilitate a transfer of ownership.
Why is the Current Owner Selling The Business?
There are all sorts of reasons people decide to sell operating businesses. Nonetheless, the genuine reason vs the one they say to you might be 2 completely different things. As an example, they might state "I have too many other responsibilities" or "I am retiring". For many sellers, these reasons are valid. But also, for some, these may simply be justifications to try to conceal the reality of altering demographics, increased competitors, current reduction in earnings, or an array of various other reasons. This is why it is extremely vital that you not depend absolutely on a vendor's word, yet instead, make use of the vendor's response combined with your overall due diligence. This will repaint a much more realistic picture of the business's present circumstance.
Existing Debts and Future Obligations
If the current business is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your deal. Numerous companies take out loans so as to cover items such as supplies, payroll, accounts payable, etc. Keep in mind that in some cases this can imply that revenue margins are too thin. Numerous organisations fall into a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may likewise be future commitments to take into consideration. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with suppliers that should be fulfilled or may cause penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the area attract new consumers? Many times, businesses have repeat customers, which create the core of their daily earnings. Certain aspects such as brand-new competitors growing up around the area, roadway building, and employee turn over can influence repeat consumers as well as adversely affect future incomes. One important thing to think about is the location of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Clearly, the more people that see the business regularly, the higher the possibility to construct a returning customer base. A final idea is the basic area demographics. Is the business located in a largely inhabited city, or is it located on the outskirts of town? Exactly how might the regional mean family income impact future revenue potential?
