Business Overview

This established company serves the oil and gas industry with effective, efficient, and environmentally safe innovations which are uniquely designed and unlike anything else on the market. Their equipment, which includes patented fluid displacement technology used primarily for oil and gas lease pads, has been designed and marketed by industry professionals who have a true understanding of costly inefficiencies in spill management at oil and gas extraction sites. With a combined 36 years left on patents, buyers will find multiple licensing opportunities on the company’s patented technology, as well as a strong potential to expand into international markets and beyond the oil and gas industry.

Financial

  • Asking Price: $1,055,000
  • Cash Flow: $200,444
  • Gross Revenue: $768,284
  • EBITDA: $137,347
  • FF&E: $10,000
  • Inventory: $130,000
  • Inventory Included: N/A
  • Established: 2009

Detailed Information

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

Training and help with transition for a reasonable amount of time.

Pros and Cons:

Two design patents; efficient and cost-saving products designed and marketed by industry professionals with a true understanding of costly inefficiencies in spills management at oil and gas extraction sites; unique design sets products apart from anything on the market

Opportunities and Growth:

Expansion into overseas markets; licensing opportunities on patented technology (combined 36 years left on patents); expansion into markets beyond oil and gas

Additional Info

The company was founded in 2009, making the business 13 years old.
The transaction shall not include inventory valued at $130,000*, which ins't included in the listing price.

Why is the Current Owner Selling The Business?

There are all types of reasons individuals resolve to sell businesses. Nevertheless, the true reason and the one they tell you may be 2 entirely different things. As an example, they may claim "I have too many various responsibilities" or "I am retiring". For lots of sellers, these reasons stand. But, for some, these might simply be excuses to attempt to hide the reality of changing demographics, increased competitors, current decrease in profits, or a variety of other reasons. This is why it is very essential that you not rely entirely on a seller's word, but instead, use the seller's solution along with your total due diligence. This will paint a more practical image of the business's existing scenario.

Existing Debts and Future Obligations

If the existing entity is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your deal. Numerous operating businesses borrow money with the purpose of covering items like stock, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can imply that revenue margins are too small. Many organisations come under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may likewise be future obligations to consider. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with vendors that must be fulfilled or might cause fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do businesses in the location bring in new customers? Most times, businesses have repeat consumers, which form the core of their everyday profits. Specific variables such as brand-new competition growing up around the location, roadway construction, and personnel turn over can impact repeat customers as well as negatively influence future profits. One essential point to take into consideration is the placement of the business. Is it in an extremely trafficked shopping center, or is it hidden from the main road? Clearly, the more individuals that see the business often, the greater the possibility to build a returning client base. A last idea is the basic area demographics. Is the business situated in a largely populated city, or is it located on the edge of town? How might the regional typical household income effect future revenue potential?