Water Utility Company w/$6.0 MM in Infrastructure

Not Disclosed, CA
Riverside County

Asking Price: Annual Revenue:
$1,500,000 Not Disclosed

Services: Utilities: Electric, Gas, Water, Sanitary

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RE: Water Utility Company w/$6.0 MM in Infrastructure Broker: Rick Rayl
Owner Financing is Available!

Quick Facts

Asking Price: $1,500,000
Annual Revenue: Not Disclosed
Net Profit: Not Disclosed
Cash Flow: Not Disclosed
Total Debt: Not Disclosed
FF&E: $9,000,000
Real Estate: Not Disclosed
Year Established: 1981
Employees: 2
BBN Listing #: 643555367
Broker Reference #: 86808-966523

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Business Overview:

Water utility company in area of rare new developments. The company has wells, storage tanks, meters, and a client subscriber base. Future development is dependent on adding additional wells which will remove the current moratorium on development. New wells give more capacity which is currently maxed out.
There is a backlog of customers waiting for meters which are priced at $8,500 and easily raised to $10,000 each.

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Property Features and Assets:

Curently, the business office is a fifth wheel trailer and is included in the sale. The balance of the operation is a series of wells, pumps, tanks, and a 9+ mile pipeline system. The land where this water company does business was plotted for nearly 1,000 lots. Currently, there are 57 lots with homes that are customers of this company. The water company was formed 37 years ago by a team of investors. They dug the first wells and laid the first portion of piping to the community. Subsequently, the ownership transferred to once well digger and now owner who continued to develop the infrastructure to it’s current configuration of wells and over 9 miles of pipelines. The area currently is utilizing all of its water production with the current wells. There is a government mandated moratorium on new development pending new water supply.

Market Competition and Expansion:

Estimated cost to install water pipelines is $100 per foot. Starting from scratch and trying to lay 9 miles of pipes would be next to impossible. This barrier to entry provides this company with a considerable if not insurmountable advantage. Potential Growth Lots of land are included with this company. Those lots have been selected as the best places to dig new wells to increase the water supply. Wells cost $50-100K. Digging new wells will provide increased water capacity and allow for the development moratorium to be lifted. Adding a new customer to the system currently generates $8,500 per meter and can be raised to $10,000. The cost to connect is negligible. There are an estimated 70-100 customers waiting for the moratorium to be lifted. They can generate $700,000 - $1,000MM and then be added to the monthly accounts. There are hundreds of lots yet to be developed.

Reason for Selling:


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.

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