Asking Price: $$20,000,000
NET WORKING CAPITAL: $4,100,000
AR: included in NET Working Capital
Adjusted EBITDA: $4,552,756
Business Description: This North Texas Company is a 25+ year old company providing upstream and midstream oilfield roustabout, pipeline service & construction, oilfield pad-frac pond construction and residential-commercial excavation within a 50 mile radius in the North Texas area. The Company has a strong, experienced, trusted operating management team. The majority of work is negotiated pricing and the vast majority is direct to owner (versus through a general contractor). Work mix varies by year but, typically, Oil & Gas is ~30-40% Roustabout, ~30-40% Pipeline and ~4-7% Drilling Pads-Frac Ponds, ~10-15% Residential Excavation, 5-10% Commercial Excavation. Roustabout is primarily maintenance and new oil-gas well construction. Pipeline is primarily installing new lines, rerouting existing lines, or repairing leaks. Excavation includes dirt work for residential and commercial customers, including new construction, grading, pond construction, subdivision road and utility construction. Most revenue is currently generated from stable, ongoing production-related work but the construction side can be quickly ramped up as drilling activity increases.
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 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.
Market & 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. A new, energetic owner can further increase sales & profits in many ways.
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.
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.
Purchase Price: The asking price for the assets of the business is $20,000,000. 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.
NOTE: The sale of a business is confidential and discreet; PLEASE DO NOT VISIT THE BUSINESS OR SPEAK WITH ANY EMPLOYEES. We know about many businesses that are for sale but might not be advertised. Check out www.adamnoble.com for more information and consider registering your criteria as a purchaser.
For information, reference North Texas Oilfield Construction, General Excavation Contractor for Sale 20064 and contact Jeff Adam, PE, MCBC, FRC, CBB at Adam Noble Group, LLC
Phone: (817) 467-2161
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During 3 decades of M&A service, Jeff Adam has successfully completed the sale of over 700 businesses and advised or completed 1,000’s of business valuations and exit plans. An entrepreneur in his own right, Jeff has started and grown 12 companies in fields including international finance, B2B services, business valuation, construction, screen printing, Mergers & Acquisitions, engineering, and manufacturing. Jeff has donated his time as a distinguished speaker at numerous national & international conferences since 1977 covering topics such as environmental services, engineering, media, craft breweries, exit planning, business valuation, charitable giving, management, business brokerage and M&A fields.
Jeff is President of Adam Noble Group, LLC, a national M&A Advisory firm, professionally valuing and confidentially selling profitable businesses owned by exit-motivated business owners to qualified strategic, corporate, private equity, partners, management, and first-time buyers. Jeff establishes rapport, builds trust, and educates business owners in the steps to meet their goals as they prepare and achieve the discreet, confidential exit of their business. Jeff exclusively represents sellers of $1M-25M value enterprises and endeavors to transfer their businesses to qualified, capable acquirers who will build upon the seller’s vision, goals, culture, and history. Jeff maintains lifelong repeat and referral relationships with sellers, their acquirers, and service providers.
Adam Noble Group has multiple M&A and business broker specialties: Manufacturing, Defense Industry, Oilfield services, Construction trades, Craft Breweries, Partnership Buyouts, Manufacturing, Service, and Wholesale Distributors.
Our M&A advisors and business brokers are all multi-industry entrepreneurs who have successfully exited their own companies. Jeff has walked in your shoes! Jeff wants to put the BIGGEST CHECK of your life in your pocket! Please contact Jeff, and he will confidentially answer all your questions.