Details - Information last confirmed on November 5, 2020
With an average profit margin of 33% over the last 5 years, the client base for this directional drilling company consists of major communication carriers and utility companies in the Phoenix area. This business is recession proof, as wireless carriers and utilities are essential. Nearly 90% of the work is done for a wide range of major communication carriers, and most work is completed by their highly skilled in-house team of eight people; subcontractors are hired as needed for larger concrete or asphalt restoration projects. Approximately 90% of work completed is directional drilling and laying fiber optic cables. Work is typically steady throughout the year and most projects are completed in the Phoenix valley area and within a 50-mile radius of the office. The current owner does no labor and provides bids and oversight. He is willing to stay on for up to one year to assist with the transition.
The business operates from a leased quarter-acre property that has plenty of room for the mobile office as well as storing equipment. Assets include 5 trailers, 1 mini excavator, 1 Subsite TKD Locator, 2 Ditch Witch Vacuums, 2 Ditch Witch Drills, plus all of the necessary tools and equipment, along with $112,500 worth of vehicles.
Priced at $2,300,000, this company has a solid foundation, positive long-term relationships with primary contractors, low overhead, and many potential paths for growth. First, a new owner could capitalize on current resources that allow the team to take on larger or additional contracts throughout the year. Second, increased focus could be paid to building upon current work for gas utilities as this company receives many inquiries about availability for this specialization. A third area would be to expand the restoration of concrete and asphalt associated with the current drilling contracts. With a reasonable investment, this could be a large area for potential growth.
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