Business for Sale Overview:
The Company is a utility contractor specializing in underground directional drilling. The Company is fully licensed for all utilities, including electric, phone, water, sewer, and cable system work. Customers include a number of large government contractors, local and state municipalities. Being fully licensed allows the company to bid on any type of utility project regardless of type of utility or size of the project. This greatly expands, the market opportunities for the company. As such, the company may work on a project to upgrade a municipality's sewer lines, install cable/fiber in a neighborhood, or lay gas lines for a public utility. The Company is a strong financial performer with revenues growing 29% a year since the end of 2004. In 2007, the company produced over $750,000 in Seller's Discretionary Earnings (SDE) on $2,437,000 in sales. A significant component of the company's value is in its sterling reputation within the industry. The company is an acknowledged expert in the field, one of the few fully licensed for all utility work, offering the highest quality work available. A strong, extremely experienced team is in place. Front-line crew members average 11 years experience. The company is the first call for prime contractors with repeat business accounting for over 80% of all work. Referrals account for the rest; the company does not marketing and has to turn down business.
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Property Features and Assets:
Drilling/boring equipment (most purchased in recent years), support vehicles.
Market Competition and Expansion:
General contractors, larger specialty contractors, and numerous small firms compete to some degree with the Company. However, most offer directional drilling as a secondary service and few are licensed to offer the services that they do. The Company serves a well-defined niche in the utility industry, directional drilling, which is seen by larger firms as something to outsource because of the investment in assets and experience necessary to perform the work. Company does not external marketing per se. Tremendous opportunity for a new owner to leverage their existing relationships to sell the Company's services and sell their services to the Company s client base. The Company is well positioned to enjoy continued growth in the robust North Carolina market. Another avenue would be to take market share by insisting that clients purchase services only from properly licensed contractors. Many competitors operate either without a license entirely or work on projects for which they aren't licensed.
Reason for Selling:
Owner wishes to spend more time with family
Additional Details:
- The property is leased.
- The owner is willing to train/assist the new owner.
- This is not a homebased business opportunity.
- This is not a franchise resale opportunity.
- This is not a distressed business or bankruptcy situation.