BUSINESS ACTIVITY: The Company is a specialty contractor that offers drain cleaning, color video inspection and electronically locating of sewer and septic pipes, hydro-jetting, Septic system installation ranging from basic gravity flow systems to Advance Treatment Technology, septic tank pumping service, sewer, and septic pipe repairs, and DEQ required operations & maintenance agreements primarily for residential customers.
A septic tank is an underground chamber made of concrete, fiberglass, or plastic through which domestic wastewater (sewage) flows for basic treatment.
HISTORY: The Owner had always had an entrepreneur spirt. In the late 80’s he had a friend who was thinking about selling his septic tank business and retiring. He knew that this was an industry that was virtually recession proof, and he could make a lot of money. Unfortunately, his friend decided to not sell but offered to help him get started.
In 1990, he purchased his first truck and was off and running on a part – time basis. The Owner knew he needed the income from his employer but was able to work the business on his day off during in the middle of the week, nights, and Sunday’s. Within two years he was able to quit his job and work full time in the business.
The Company continued to grow and needed to hire another employee to keep up with demand. He heard of an individual who owed a franchise that was closing and looking for work. This was an opportunity to hire an employee with a vast amount of knowledge and to capitalize on his knowledge to become a full-service septic tank business. After all, he was tired of referring out installation work to competitors and the customer complaining to him about the level of service or quality of work that was being completed.
For over 30 years the core values, services, quality of work and reputation has built the Company to what the business is today. The Company is busier than ever and the need to hire additional employees is necessary just to keep up with the organic growth.
SALES AND SELLER’S DISCRETIONARY CASH FLOW:
MARKETING STRATEGY: The Company a has limited marketing strategy in place. The Company has relied on their reputation, repeat business, word of mouth, radio advertising and robust website to grow the sales. The outlook in the industry is strong. A new Owner with more energy could increase the work force and expand Service to grow the business.
FURNITURE, FIXTURES, VEHICLES & EQUIPMENT: Included in the purchase price is Inventory of $35,460 and Furniture, Fixtures and Equipment of $400,000. The FF&E has been re-casted to reflect an estimate to replace the assets with the same or similar assets in the used marketplace.
DAYS AND HOURS: Monday through Friday hours are 8:00 am to 5:00 pm.
EMPLOYEES: The Company employees one support staff and 7 field technicians.
FACILITIES: The business is in a free-standing building with leased space totaling approximately 2,400 square feet. The office is approximately 1,000 square feet with 1,400 square feet of warehouse space on a two-acre parcel. The lease is for $2,000 per month, plus NNN charges.
REASON FOR SALE: The Owners are close to retirement age and want to advantage of their health to travel and have time for other interest.
TERMS: The asking price is $1,800,000. This is an SBA transaction with Buyer’s cash infusion of $270,000 and Commercial lending of $1,530,000 plus SBA fees. The term of the SBA loan is for 10 years at an interest rate of 5.75% with payments of approximately $16,795 per month.
INITIAL INVESTMENT: The buyer will need to have approximately $360,000.00 for the following acquisition cost:
Directions: Contact Bill Billingsley for more information at (503) 233-8600, Extension 1 or e-mail email@example.com.
No additional information will be released until the buyer has been pre-qualified by the Broker.
NOTE: THE BROKERS HAVE MADE NO INVESTIGATION OR VERIFICATION OF THE INFORMATION PRESENTED HEREIN