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Asking Price: Gross: Cash Flow:
$5,000,000 $9,000,000 $2,275,000
$700,000 ( not included in the asking price)
SUMMARY: This Texas-based Company, founded in 1980, is managed by its owner to produce Cash Flows of approximately 25% of Total Income in good years and maintain the capacity to respond quickly to industry turn arounds in down years. The Owner has navigated many up/down cycles in four decades. He maximizes profits by retaining and maintaining high-quality assets during downturns, which sets up maximum profit capacity in boom periods.
SERVICES: The Company's mission is to provide customers with a broad range of cost-effective, high quality, value-added construction, maintenance, repair, and hauling services delivered with a commitment to efficiency and safety by highly experienced personnel.
CUSTOMERS: The Company has approximately 35 Master Services Agreements (MSA) with oil & gas, mining, municipal, other commercial and individual customers. MSA’s produce 90% and competitive bids produce 10% of revenues. Revenue in 2018 was produced from 65 clients; the top 10 and the top four produced 87% and 65% of revenues, respectively.
MARKET: The market for the Company's multi-industry services is many tens of millions of dollars. The Company successfully and profitably moves resources to areas of service demand as required by its customers. The Company provides oil & gas services in East Texas and in the Permian Basin. Services are provided to mining, municipal and other commercial customers in East Texas.
PERSONNEL: The Company’s 60 full-time employees are its greatest asset and the workforce has been expanded to 120 employees in peak periods. The management team has an average industry experience of approximately 15 years (cumulative experience approximately 120 years). The Owner performs overall general management, leaving field operations to key field supervisors.
OBJECTIVE: The Owner seeks a Buyer with significant energy sector management or company ownership experience capable of assuming ownership and leadership of the Company in a relatively short time.
PRICE AND TERMS: The Selling Price for the Business is $5,000,000. Included in the Selling Price are Working Capital (A/R - A/P) of $120,000 and equipment of $5,000,000. (Also available for purchase is $3,000,000 of excess assets.) The owner’s business model for 40 years has been to maximize profits in boom periods and hold assets in lean times so that the Company is positioned for maximum recovery and profitability in the next boom cycle. Consequently, the Company is currently somewhat asset heavy, providing significant capacity for expansion in a current growth period. However, since a Buyer’s model could be different, the Owner will include assets in the sale to match the Buyer’s offer, terms, and goals for the Company after closing. He will sell the excess assets separately.
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