Hydro Excavation Services Company For Sale

Business description

The March Group currently represents a hydro excavation company primarily serving the natural gas industry. Hydro excavation provides a nondestructive means of excavating underground infrastructure and for safely exposing underground utilities by utilizing pressurized water and a high-power vacuum system. Other applications include debris removal and cleanout, trenching, reclamation, and environmental spill and disaster (flood) cleanup. A well-maintained fleet of 10 hydrovac units includes 6- and 12-yard capacity trucks, as well as four-wheel drive units that allow access to almost any job sight. The use of support trucks, which haul water and debris to and from the main units (a company specialty), allows for a more productive and cost-efficient project. The company enjoys an active and loyal account base of 16 customers, and a 90-percent rate of repeat business. Revenue is generated by a balanced mix of 50 percent maintenance work and 50 percent new construction. Centrally located within the oil and gas fields of the Mountain States, the company can efficiently serve clients from its main and satellite facilities.

Property information

Real Estate:

Lease

Premises details:

Company headquarters occupies 7,400 sq. ft. of office and shop space. The building is owned by the shareholders and leased to the Company at a fair market rate of approximately $6,500 per month. The building is not for sale.

Size in square feet:

7,400

Other information

Expansion potential:

Opportunities to diversify and grow revenue include pursuing business in the environmental, disaster, local government, electrical substation, and oil refineries markets.

Competition / Market:

The company is affected by activity in the oil and gas industry. However, 50 percent of revenue is generated by maintenance activity as opposed to new construction.

Support & training:

The shareholders are not involved in daily operations, but are willing to provide ongoing consulting support. The general manager is amenable to remain with the new owners through a reasonable transition period.

Reasons for selling:

Lack appropriate capital to take advantage of growth opportunities. Involvement in multiple unrelated businesses.