Oil Gas Sales Reconditioning Inspection In Oklahoma For Sale

Business description

This very established company has been doing business with Oklahoma oil and gas exploration and production companies for decades. They sell (new and used), repair, recondition, test, and inspect certain vital equipment used in the drilling and production of oil and gas wells. The company has minimal debt, and has tremendous growth opportunity. The owners are of retirement age and do not have a desire or motivation to aggressively grow the company. Note that almost ALL of their business is repeat business from only 50 or so mature and loyal customers that respect and admire their level of service and dedication. And, they only have focused primarily in Oklahoma. Tremendous opportunities exist to expand their customer base in Oklahoma, to expand geographically to Texas, Kansas, and the Rockies, and to add new products and services. Or, for an established sales and service related company, this would make an excellent diversification opportunity. Estimate sales for 2011 are $15 million, with a corresponding EBITDA of $1.66 million. Owners are flexible in a transition and will train buyer or buyer’s management team as needed.

Property information

Real Estate:

Real Property Included

Location:

The business operates from two close-by locations with ample acreage, and easy interstate access. The company has specialized equipment, vehicles, and transportation equipment estimated in value at $600k. The owners also desire to sell the real estate as part of the transaction.

Business Operation

Expansion potential:

This company is perfectly positioned for a buyer that is motivated and capitalized to take their reputation and name to new customers in Oklahoma and other states with the addition of just a few sales representatives, and the addition of transportation equipment as needed. Or, integrating this into a similar sales and service environment would also represent a great opportunity.

Competition / Market:

Competition is limited with a few competitors in Oklahoma and a limited number out of state. Generally speaking, this company’s repeat business is so high that they don’t generally have competitive pressure.

Reasons for selling:

Retirement

Other information

Support & training:

Ownership if very open working with Buyer post-sale to ensure a smooth and successful transition.

Furniture / Fixtures value:

$1,000,000 (included in the asking price)

Inventory / Stock value:

$2,000,000 (included in the asking price)