Business Overview

For over 30 years this highly successful Pacific Northwest water well drilling company has capitalized on their exceptional knowledge and service. Combined with their pump service business it is one of the most well respected companies in the industry.

There are only 3 main competitors within a 100 mile range.

The Purchase of a larger Drill Rig that enables them to do more municipal projects and by expanding their areas that they will do projects in. Once that is done the pump service will follow.

Financial

  • Asking Price: N/A
  • Cash Flow: $2,903,488
  • Gross Revenue: $8,410,077
  • EBITDA: N/A
  • FF&E: $8,579,000
  • Inventory: $2,500,000
  • Inventory Included: Yes
  • Established: 1978

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:14
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

4 weeks

Purpose For Selling:

retiring

Additional Info

The business was started in 1978, making the business 44 years old.
The sale does include inventory valued at $2,500,000, which is included in the asking price.

The company has 14 employees and is situated in a building with approx. square footage of N/A sq ft.

Why is the Current Owner Selling The Business?

There are all kinds of reasons why people resolve to sell companies. Nevertheless, the true factor vs the one they tell you may be 2 totally different things. For instance, they may state "I have too many other responsibilities" or "I am retiring". For numerous sellers, these reasons stand. However, for some, these may just be justifications to try to hide the reality of changing demographics, increased competition, recent decrease in profits, or an array of various other factors. This is why it is very vital that you not depend completely on a vendor's word, yet rather, use the seller's response together with your general due diligence. This will paint a more practical image of the business's present circumstance.

Existing Debts and Future Obligations

If the existing business is in debt, which many businesses are, then you will certainly need to consider this when valuating/preparing your deal. Numerous businesses finance loans with the purpose of covering points like inventory, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can suggest that profit margins are too thin. Lots of businesses fall under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may also be future obligations to take into consideration. There may be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with suppliers that must be fulfilled or might lead to penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the area bring in new customers? Most times, operating businesses have repeat customers, which create the core of their daily profits. Particular factors such as new competition sprouting up around the location, road construction, as well as personnel turn over can influence repeat consumers as well as negatively affect future revenues. One vital thing to think about is the area of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Clearly, the more individuals that see the business on a regular basis, the higher the opportunity to develop a returning client base. A last thought is the basic area demographics. Is the business placed in a largely populated city, or is it situated on the edge of town? Just how might the neighborhood median house earnings effect future revenue potential?