Very Profitable Water Purification Business

Business Overview:

We are delighted to offer an outstanding company which designs, builds and services large scale water purification systems. The company, located in a large Midwestern city, has a successful and profitable 90-year history, which has resulted in a recognized brand with a strong reputation.

The company offers both proprietary and non-proprietary products to address a variety of customer needs for ultrapure, industrial and commercial water including:

1.An array of ultrapure water purification systems
2.Industrial and commercial filters, water softeners and bulk brine systems
3.Large reverse osmosis, condensate polisher & deionization systems
4.Industrial water purification system design and engineering

The global industrial water filtration market is projected to reach $45.2 billion by 2027 from an estimated market size of $33.5 billion in 2022, an expected annual growth rate of 6% - 10%. It is being driven by rising environmental regulations, tighter governmental standards, elevated safety in healthcare, higher performance in industrial facilities and steam generation and rising need for equipment dependability and lifespan extension.

The business has recently experienced high growth due to its ability to leverage its brand and intellectual property. It translates technical data into a clear value proposition that resonates with target clients. This technical information is integrated with interactive website functionality and company specific software that continually results in high value sales.

The owner believes a material number of growth opportunities are not being exploited due to the lack of a broader operational team. The business has grown 200% (to nearly $4.0 million in annual revenues) since 2020. The owner is seeking a growth equity partner and is willing to sell all (or a majority of the business) to a buyer who offers strong operational management skills to capitalize on market opportunities. Further, this will allow the owner the opportunity to focus on developing intellectual property that could trigger even more business growth.

The company has clearly defined operational and marketing processes in place, fundamental for scaling the business. These processes are supported by strong, longstanding relationships with a variety of Fortune 500 clients, large national contractors, national engineering firms, and top-notch OEM partners, which position it for continuing strong growth with the right team.

The business operates from a leased 3,000-foot facility (which includes four offices, a conference room, a storage room and one parts room). The company employs two skilled technicians, an office manager and one salesperson.

The nearly $4.0 million in annual revenues supports an annual SDE (seller’s discretionary earnings – the historical, normalized cash flow available to pay an owner-operator and service debt) at a current two-year annualized run rate of $1.0 million. The multi-year annual SDE exceeds $750,000. Using a modest SDE multiple of 3.0x results in an attractive $2.4 million purchase price. The seller anticipates carrying a medium six figure seller note for the right buyer.

To learn more about this niche business loaded with cutting edge industrial design and intellectual property, please contact Mike Greengard.

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Property Features and Assets:

Operates from a leased 3,000 square foot facility.

Reason for Selling:

Retirement

Additional Details:

Documents:

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