O&G Heavy Equipment Leasing and Manufacturer

Not Disclosed, TX
Harris County


Asking Price: Annual Revenue:
$2 $9,862,388

Manufacturing: Non-classifiable


Request More Information
Contact the Seller

RE: O&G Heavy Equipment Leasing and Manufacturer Broker: Bobbi Coffey

Quick Facts

Asking Price: $2
Annual Revenue: $9,862,388
Net Profit: Not Disclosed
Cash Flow: $3,766,863
Total Debt: Not Disclosed
FF&E: $1,500,000
Real Estate: Not Disclosed
Year Established: 2011
Employees: 18
BBN Listing #: 617144107
Broker Reference #: 76931-879431

Email or Print Listing

Request More Information
Contact the Seller


Business Overview:

TRANSWORLD BUSINESS ADVISORS OF HOUSTON. LISTING REF #76931-879431

Due to volatility of O&G, this business will not qualify for SBA. Cash buyers only will be considered. Seller may finance a small portion depending on experience and qualifications. Real estate is in addition to business.

2022 revenues through September are just over $10M, with EBITDA in excess of $3M. Current list price does NOT include any working capital accommodations.

This company designs, manufactures, services, sells and rents/leases downhole drilling tools for oil well and construction businesses. Established in 2011 by prior electrical engineer for a large EPC corporation, this company is known for providing a complete line of proprietary drilling motors, as well as manufacturing spare parts for directional companies and competitors products.

Sales reached over $14M in 2018, with EBITDA in excess of $2.3M. Following a dip related to the reduction of land drilling rigs in 2019, and then the pandemic, 2021 EBITDA exceeded $1.15M with over $5.5M revenue. Rig count has been steadily increasing and, with crude prices on the rise, this is an excellent opportunity for new ownership to capitalize on the regrowth of operational drilling rigs and reap the benefits of future potential at a bargain price. Includes substantial motor parts inventory at cost.

In addition to the business for sale, the custom purpose built facility, in excess of 27,000 square feet, plus substantial separate upstairs living space, is available for sale for $5M. This impressive building includes a service center equipped with two overhead and two jib cranes which support four breakout machines and two hydraulic vices. Located on 6 acres.

Established in 2011 under a single individual.
The oil well drilling service business is very competitive and is dominated by super industry majors such as NOV Baker Hughes, etc. Company occupies a niche for which the majors are unable to fill due to response time. Historically, they have failed to take advantage of growth opportunities due to lack of personnel required to support an expanded product line, therefore, expanding the inventory and selection of power sections to meet the ever changing requirements of the drilling engineers as well as introducing tools to support new drilling requirements is a critical focus for a new owner to exponentially grow the business.

In addition, the many small competitors they see in the market are too small and don't maintain the reserves necessary to weather the drops in oil prices and rig counts, and now with the pandemic this has become even more evident. This company has the capacity to be ready when the market swings up and poised to grab an increased market share.

27,400 sq ft plus living space built out upstairs, situated on 6 acres. Seller prefers to sell real estate and not lease.

Buyers will be required to execute an NDA, and complete a Buyer Profile if one is not already on file with Transworld. Seller will consider seller financing on the business for a qualified buyer. Contact BOBBI COFFEY 832-481-4406 or BCoffey@TWorld.com.

To request more information regarding this listing, simply check the ADD TO REQUEST INFO BASKET button and when you are done searching and have made all your selections, simply click on the REQUEST INFO button at the bottom of the page.

Reason for Selling:

Retirement

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.

Relevant Links:

Request More Information
Contact the Seller



BusinessBroker.net is one of the largest business for sale marketplaces in the world that connects tens-of-thousands of business buyers and sellers every month. Sell a Business Online or if you’re a broker or a commercial agent sign up for a Business Broker Membership today!