MergerPlace

Well Drilling

North Carolina


  • Asking Price: $499,000
  • Gross Income: $663,647
  • Cash Flow: $169,791
  • Real Estate: Not Disclosed
  • Inventory: $15,000
  • FF&E: $160,000
  • Listing ID: #225132
  • Established: 1938
  • Employees: 2 FT

Business Description

After many years in the well drilling and services business, the owner of this great company is ready to retire and pass along this opportunity to a new owner. This business has a solid reputation and repeat customer business for service, repairs, and maintenance revenue. The well-known company is located in the high growth western NC area and enjoys one of the best reputations in the local market. The company serves residential, commercial, and industrial customers and enjoys a very high percentage of market share due to limited competition in this specialized industry. While the business is a great stand-alone business with a great operating history, it could be a great strategic bolt-on business to an existing well drilling or plumbing contractor business. A great business opportunity for a husband and wife team to expand the showroom and develop a broader product offering and customer options.

Under the CARES Act as revised by the Stimulus Act, if you use an SBA 7(a) guaranteed loan, this company qualifies for 6-months of principal and interest paid by the SBA to the lender on your behalf. The loan payments paid by the SBA are not taxable. The SBA is also waiving its loan guarantee fee (usually 3-3.75% of the guaranteed amount). The SBA guaranteed loan must be approved by the SBA before 9/30/2021, or earlier if funds run out.


Business Details

Primary Business Category: Contractors - Special Trade
Location: North Carolina

Company Information

Year Established: 1938
Home Based: No
Franchise: No
Relocatable: Yes
Number of Employees: 2 FT

Financial Information

Asking Price: $499,000
Gross Revenue: $663,647
Cash Flow: $169,791
FF&E: $160,000
Inventory: $15,000
Seller Financing Available: No

Property Information

Facilities:

The company is located in a rented facility with easy access to major highways and its customer base. The landlord is interested in selling the real estate to the buyer of the business, or continue to rent. The business is easily relocatable as most of the work is performed on-site at the customer's home or business location.

Growth & expansion opportunities:

Water is an essential need/service and as population continues to grow, reliance on clean and purified water systems will increase in demand. As more rural homeowners are seeking to own and control their own water sources, well drilling will continue to remain in demand. In addition, demand for irrigation systems for agriculture and other industry demands will continue to create growth opportunities. The seller feels that the growth area of water filtration and purification of existing municipal water sources entering a home or business is a great growth potential segment of the company that he has not pursued. The demand is growing to remove harmful chlorine and other treatment chemicals that are becoming a growing health concern to more families. The over the counter consumer systems are not as effective in removing chemicals, minerals, and impurities from public or well water as a professionally designed and maintained system. As older well systems need upgrading the demand for better and effective filters, pumps, and better water testing will continue to drive revenue to the company. Geothermal heating and cooling systems is a growth area that could be marketed as energy costs rise. A new owner could also pursue more local and state government contracts which is not currently being pursued. This is a solid business that is recession resistant and presents a rare opportunity for a new business owner working with a great seller to transition to being your own boss.

Competition:

Given the long-term operation of the company, niche industry segment, and equipment requirements, the competition is limited and primarily comes from smaller providers in the market. Larger competitors outside of the local market have geographic constraints due to travel time and labor costs, inventory and other related operating costs to compete for repair and maintenance business. The company is scalable with the addition of more service technicians or positioning a satellite crew into other markets. The company enjoys a long term core customer base that has multiple opportunities to market new products by a new owner to expand the revenue and profits.

Reason for selling:

After many years of successful operations the current owner has elected to retire and transition this business to a new owner. This is a very stable, recession resistant and niche business. There are many opportunities for a new owner to expand this company and scale the operations not only locally but in a wider geographic footprint.

Support & Training:

Will train for 3 weeks @ $0 cost. The company has long-term vendor supply relationships for the specialized equipment needed. The majority of the income is derived from installations of pumps, tanks, filtration and purification systems, inspections, water analysis, and geothermal heating and cooling. Securing a certified plumber license would be beneficial to a new owner for expanding certain areas of potential growth, but not a requirement. Also, certain aspects of the business that are currently being subcontracted could be pursued to create a major revenue and cash flow enhancement to the business.

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Business Listed By:

Jon Swift

Murphy Business Brokers