Profitable Specialty Contractor; Water Supply and Geothermal Systems

Business Overview:

Full Service Water Supply and Geothermal Contractor operating in a market with natural demand for its service.

The water supply services include: New well drilling, well pump and underground piping installation, tank installation and disinfecting. Additionally, there is ongoing demand for well servicing which accounts for 40% of revenue and the highest gross profit margin. 90% residential services. Additionally, it provides water treatment equipment and maintenance and municipal water hook-ups.

Demand for Geothermal heating & cooling systems has been growing year over year as homeowners turn to alternatives to heating oil, expensive natural gas and the environmental concerns of both. While the initial cost is incrementally higher, the investment is returned via energy cost savings and federal/state tax incentives to the homeowner. This company is generally referred to as the seasoned advisor and installation professional in this emerging, profitable market.

The company functions from a 2500 sf building which serves as office, warehouse and repair shop. It operates with 2 experienced field operators and a part time admin/bookkeeper. Additional manpower is subcontracted for as necessary. Very clean company accounting records; billing and customer records are computerized.

Competition: There are other competitors in the market. Mostly working within their geography.

Growth Opportunities: Considerable high ticket opportunities for geothermal among upper income seasonal homes. Additional opportunities exist in the water treatment market as consumers become increasingly aware of this need.

Support & Training: Committed to 30 days. Consulting arrangements thereafter

Other comments / information: Interested parties should have engineering or mechanical background or be prepared to hire an operations engineer. Profitability allows for this.

Reason for selling: Retirement

Gross Revenue: $680,030

SDE/Cash Flow: $349,118

FF&E : $310,500

Asking Price: $729,000 contact John Dirkmaat for information