The 135+ seasoned and skilled employees are primarily from the local area and do not require per diem pay (an advantage for the company in bid situations). All operational employees go through regular training and safety programs. The equipment is in excellent condition and maintained.
The Company has long-term management that runs all day to day operations. The employees are highly motivated, generally long-term tenure and experienced in what they do. As such, they are generally able to operate independently. The business is not dependent on owner relationships. Sales relationships are between customers and employees and supervisors. Although the owner is involved full-time in the business, they are able to take extended vacations and time away from the business, confidently knowing that the management team has all the bases covered! The owner's involvement relates to providing financial and managerial support, such as approving a large capital purchase to update equipment (eg add, upgrade or replace major equipment) and an alternate opinion on major projects.
Sales are primarily repeat, recurring due to excellent long-term relationships between employees and clients. The Company's various service niches generate repeat revenue streams with predictable and high margins. The business has ~100's of active, diverse customers with the top 10 customers accounting for approximately 87% of sales. The largest customer is typically ~27% of sales and is an oil and gas production company. The company has MSA?s with over 20 oilfield operators located across North Texas.
The owner plans to continue focusing on other business interests in preparation for retirement. The business has excellent books & records and can prove all sales & expenses.
Facilities: The business operates from a North Texas location consisting of approximately ~12,400 SF of office-warehouse-shop space, on ~10 acres, leased for ~$6,417/month. A long-term lease with options is available to a qualified purchaser.
Competition: The Company operates in competitive oil and gas and general excavation markets in North Texas. Most companies competing in this space are similar sized or much larger. Some competitors offer a wide range of services or provide services in specific market niches. The Company focuses on creating relationships and bonds between Company employees and their customers based on quality work, fair pricing, integrity, and reliability. These relationships generate repeat revenue streams with predictable and high margins, with growth opportunities.
Growth & Expansion: The Company's primary marketing strategy is to leverage its relationships with people in the oilfield and real estate industries to obtain bid and quoted work and primarily Master Service Agreements (MSA's). The Company does no advertising and relies on referrals from existing customers, relationships with oilfield-construction superintendents-managers and real estate company owners/executives plus referrals from customers of its affiliates.
The combined oilfield niche and general excavation services allow the Company to have repeat revenue streams with predictable and high margins. The business is recession-resistant, and a new, energetic owner can further increase sales & profits in many ways such as: 1) Expand into other geographic markets as requested by current customers, 2) Expand pipeline services to other areas of TX and OK, 3) Add additional salespersons, 4) Scale into other oilfield basins such as Permian and Eagle Ford, 5) Implement job costing to identify more efficient use of employees and equipment, 6) Add equipment rentals.
Financing: Price NEGOTIABLE. Seller will consider financing up to 10% of the purchase price to a Purchaser qualified/approved by the Seller.
Support & Training: Seller will train a buyer for 4 weeks included with the purchase price. Operation training will be provided by the management team. The seller is willing to provide additional training or remain in an ongoing consulting role at mutually agreed compensation.
Reason for Selling: Preparation for retirement.
Purchase Price: The asking price for the assets of the business is NEGOTIABLE. If required by a commercial lender, the seller will consider financing up to 10% of the price to a purchaser qualified/approved by the Seller. All financing is to be personally guaranteed by the individual principals of a prospective purchaser. THE SELLER PREFERS TO SELL FOR ALL CASH. The assets include inventory at cost of $0 (all materials are expensed to each job), NET working capital (Accounts Receivables less Accounts payables + Accrued Expenses) valued at $4,100,000 and FFEV (Furniture, Fixtures, Equipment and Vehicles) valued at $7,600,000. The price will be increased or decreased for actual inventory, work in process (WIP) and NET working capital as of the sale date.
NOTE: All statements, figures, and values are subject to a prospective purchaser?s due diligence.
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