Business Overview

First things first, this water well drilling company is not tied to the oil and gas industry. The majority of its work is on residential wells, with some commercial and municipal work mixed in. While the company does generate half of its revenue from new drilling projects, the other half comes routine maintenance work and service calls. These residential customers include ranches, farms, new homes and new developments. While the business does no oil and gas related work at this time, that is purely by the owner’s preference. If a new owner wanted to re-enter that arena, there is ample opportunity to do so. The business operates in a unique area that is seeing residential growth and development as more and more people desire to relocate out of the city and suburbs to a more “country” lifestyle.

To receive more detailed information about this business, please complete the online non-disclosure agreement at


  • Asking Price: $5,500,000
  • Cash Flow: $577,875
  • Gross Revenue: $1,829,928
  • EBITDA: $466,633
  • FF&E: $2,100,000
  • Inventory: N/A
  • Inventory Included: Yes
  • Established: 1970

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:Yes
  • Building Square Footage:6,000
  • Lot Size:N/A
  • Total Number of Employees:8
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The owner also owns the real estate where the business operates from, and that property is included in the $5.5 million asking price. The owner estimates the property value at $850,000. The facility sits on 4 acres of highway frontage. The main building is a 6,000 sq. ft. shop attached to a 400 sq. ft. office, with 800 sq. ft. of additional space on a second floor and 800 sq. ft. of second-level storage space in the shop. There is also a 30x125 shed on the property where vehicles and equipment are stored.

Is Support & Training Included:

Ownership is willing to remain with the business long-term if needed.

Purpose For Selling:


Pros and Cons:

There is very few competitors in the areas this business serves that have the capabilities it has to drill deep water wells. Couple that with the explosion in rural residential development in the service areas and the multi-decade reputation for quality work, and this business is sitting in an extremely advantageous position.

Opportunities and Growth:

As described above, the rural residential expansion in this business' geographical region alone is creating growth opportunities. As for other growth avenues, the owner has the resources, connections and reputation to expand the business bak int the oil and gas sector should a new owner want to grow that direction.

Additional Info

The venture was started in 1970, making the business 52 years old.

The company has 8 employees and is located in a building with approx. square footage of 6,000 sq ft.

Why is the Current Owner Selling The Business?

There are all kinds of reasons people resolve to sell operating businesses. However, the real reason vs the one they tell you may be 2 totally different things. As an example, they might state "I have a lot of other obligations" or "I am retiring". For lots of sellers, these reasons are valid. But, for some, these might just be excuses to attempt to hide the reality of altering demographics, increased competition, recent decrease in revenues, or an array of various other reasons. This is why it is extremely important that you not rely absolutely on a vendor's word, but instead, make use of the vendor's response in conjunction with your general due diligence. This will repaint a more sensible image of the business's present circumstance.

Existing Debts and Future Obligations

If the current entity is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your offer. Many businesses take out loans in order to cover points like stock, payroll, accounts payable, so on and so forth. Keep in mind that occasionally this can suggest that profit margins are too tight. Lots of organisations come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future obligations to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with suppliers that have to be satisfied or may cause charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the location attract new consumers? Often times, businesses have repeat clients, which develop the core of their daily profits. Certain elements such as new competitors growing up around the location, road building and construction, as well as personnel turnover can affect repeat consumers and negatively influence future revenues. One vital thing to consider is the placement of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Clearly, the more people that see the business regularly, the better the chance to develop a returning customer base. A last thought is the general area demographics. Is the business situated in a densely inhabited city, or is it situated on the outside border of town? Exactly how might the local median family income influence future earnings prospects?