Business Overview

This company provides water to a small community just East of Pueblo with approximately 166 homes and 6 businesses. The company has the right to 80-acre feet of water, and by augmentation may purchase another 40-acre feet. The business is controlled by the Public Utilities Commission and the prices to the customers are regulated by the PUC. Currently customers pay $58.75 per month, however a request for rate increase as a result of cost of living increases and additional electric expenses should be approved. The current owner has installed a web based system for client bill paying and accounting.

The water company has been in place for 50+ years. Approximately 2,000 ft of main lines and valves have been replaced. The pump house has been updated with new chlorinators and controls. The pumps are approximately 5 years old and very well maintained and alternated periodically for maintenance purposes. The pumps have an expected life of 15 years.


  • Asking Price: $869,600
  • Cash Flow: $115,892
  • Gross Revenue: $119,392
  • FF&E: $137,938
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 1949

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:Yes
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:1
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

Negotiable as required by Purchaser.

Purpose For Selling:

The owner is in declining health and is looking to retire.

Opportunities and Growth:

Water is a resource that will always be in demand and in Colorado the demand is ever increasing. This small community has been serviced by this company for some 50 years and the need for water will always be present. The costs associated with individual homeowners obtaining alternate sources of water would be cost prohibitive. This is a great semi-passive business investment for a family trust or an individual seeking a secured return on their investment. Water is a commodity that will not depreciate regardless of the economy. Installation of meters may reduce the household consumption and therefore reduce the costs of augmentation, thus increasing the net profit of the business.

Additional Info

The company was started in 1949, making the business 73 years old.

The company has 1 employees and resides in a building with estimated square footage of N/A sq ft.

Why is the Current Owner Selling The Business?

There are all kinds of reasons why people choose to sell companies. Nevertheless, the true factor and the one they say to you may be 2 absolutely different things. For instance, they might claim "I have a lot of other commitments" or "I am retiring". For numerous sellers, these reasons stand. But also, for some, these may simply be reasons to attempt to hide the reality of altering demographics, increased competition, current decrease in earnings, or a variety of other reasons. This is why it is really important that you not depend completely on a seller's word, however instead, use the seller's response combined with your overall due diligence. This will paint a much more practical image of the business's existing circumstance.

Existing Debts and Future Obligations

If the current business is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your deal. Many companies finance loans in order to cover things like supplies, payroll, accounts payable, etc. Bear in mind that occasionally this can suggest that earnings margins are too tight. Many organisations fall into a revolving door of taking on debt 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 tools or the building where the business resides. The business might have existing agreements with vendors that have to be satisfied or may lead to fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do businesses in the area bring in new consumers? Often times, operating businesses have repeat customers, which create the core of their everyday revenues. Specific variables such as new competitors sprouting up around the location, road building, as well as staff turnover can affect repeat consumers and also negatively affect future revenues. One essential thing to consider is the placement of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the highway? Certainly, the more people that see the business on a regular basis, the greater the chance to build a returning consumer base. A last idea is the basic location demographics. Is the business placed in a densely inhabited city, or is it situated on the edge of town? Just how might the local average home income effect future earnings potential?