Listing ID: 71397
ASK PRICE INCLUDES Includes entire well drilling operation, employees, 28-vehicle fleet, all drilling rigs, established relationships with regional construction companies, and waiting list of over 140 residential customers. Tremendous projected growth and endless expansion opportunities.
Opportunity to own and grow eastern Connecticut’s LARGEST AND MOST PROFITABLE water well drilling business. Currently running a backlog of over 140 customers already on the books waiting and the phone ringing nonstop with new customers.
A second-generation family business, dedicated to bringing superior well drilling, pump services and groundwater maintenance solutions to residents throughout the region, with only a small handful of competitors. Licensed to operate in CT, RI, and MA.
New owner can expect full support and training and can operate under current licensing until licensed.
The growing demand for water and untapped opportunities for expansion offer almost limitless growth potential.
Click the “Contact” button now to request an NDA and receive the full offering memorandum for more info.
- Asking Price: $4,999,000
- Cash Flow: $700,000
- Gross Revenue: $2,500,000
- EBITDA: N/A
- FF&E: $2,000,000
- Inventory: $1,000,000
- Inventory Included: N/A
- Established: 1987
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:50,000
- Lot Size:N/A
- Total Number of Employees:18
- Furniture, Fixtures and Equipment:N/A
-- 50,000 sq ft facility, including 2 MASSIVE overhead cranes and fully equipped machine shop – ALL equipment repairs done in-house. Not included in sale, can be rented to the new owner at a very low price, estimated $6/sf. Current owner WILL ALSO PAY for all property taxes and negotiable on also possibly paying heat. -- 28 registered vehicles, all owned outright -- 7 drilling rigs (6 rotary rigs and 1 cable rig – over $1 million each to buy new) -- Many MILLIONS of dollars worth of machinery and equipment (ALL included in asking price). Way too much to list here. Request an NDA today to receive the offering memorandum showing all high-quality pictures of facilities, equipment, machinery, etc.
Current owners will stay on for as long as needed for new owner to get established and licensed.
Licensed in CT, RI, and MA. Only 3 well drillers in Eastern CT, and they are the largest. One of only 4 drillers in all of RI, and again, they are the largest.
Demand for water is only going to increase in coming years. Huge revenue potential by expanding into water treatment services.
The company was founded in 1987, making the business 35 years old.
The sale won't include inventory valued at $1,000,000*, which ins't included in the asking price.
The company has 18 employees and resides in a building with estimated square footage of 50,000 sq ft.
Why is the Current Owner Selling The Business?
There are all kinds of reasons people choose to sell companies. Nonetheless, the real factor and the one they tell you might be 2 entirely different things. As an example, they might state "I have too many various obligations" or "I am retiring". For many sellers, these factors are valid. But also, for some, these might simply be reasons to attempt to conceal the reality of altering demographics, increased competition, recent decrease in incomes, or a variety of various other factors. This is why it is very important that you not count totally on a seller's word, but instead, use the vendor's solution in conjunction with your overall due diligence. This will paint a more reasonable picture of the business's current scenario.
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 offer. Numerous operating businesses take out loans with the purpose of covering things such as supplies, payroll, accounts payable, etc. Remember that occasionally this can mean that earnings margins are too tight. Many businesses fall into a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may likewise be future obligations to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with vendors that need to be satisfied or might lead to fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the location attract brand-new clients? Often times, operating businesses have repeat consumers, which develop the core of their day-to-day earnings. Specific elements such as new competition growing up around the location, roadway construction, and also staff turnover can affect repeat clients and also adversely affect future revenues. One crucial thing to think about is the location of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Obviously, the more people that see the business regularly, the higher the chance to develop a returning customer base. A final idea is the general location demographics. Is the business placed in a densely inhabited city, or is it located on the outskirts of town? How might the neighborhood median house income influence future earnings potential?