#10711 Highly Profitable, Growing Oilfield Service
Acid Pumping and Tool Rental
Founded in 1980 and based in the Midwest, this Oilfield Service Business for Sale is one of the leading acid pumping and tool rental businesses in the southern and central part of its state. Serving a 180-mile radius from its highly visible, owned location that services some of the largest oil and gas fields in the region, this highly profitable Company has experienced exceptional annual revenue growth of more than 30% since 2010, with its 2012 adjusted EBITDA margin exceeding 30%.
Driving its revenue growth is its large, diversified and sustained customer base of over 150 customers. With only one customer representing more than 10% of sales, the Company is able to leverage its relationships with customers to additional revenue streams as it continues its remarkable growth.
Specifically, the Oilfield Service Company has executed significant revenue growth over the past several years, posting 38% revenue growth from $3.24 million in 2010 to $4.46 million in 2011. On a trailing twelve-month basis, the Company’s revenue is up 79% over 2010, to $5.8 million. With such impressive revenue growth, the Company has experienced explosive adjusted EBITDA growth, with trailing twelve-month EBITDA of $2.10 million, representing nearly 200% growth over 2010.
Known for its reliability, integrity, quality of work, timeliness of response, competitive pricing and geographic location, the Oilfield Service Business for Sale is considered a leader in the region with a reputation for first class service. In addition, valued at $3.2 million, the Company’s equipment, including acid pumpers, transports and rental tools, are current and well maintained, adding to its ability to consistently deliver for customers. The Company’s current equipment list can be provided upon request.
The Company’s headquarters, with its office and yard, is owned by the Company and can be included with the sale or leased with option to buy. Located on a highway frontage road, the combined office and shop is approximately 10,000 square feet. An additional 1,200 square foot chemical storage facility and a more-than 13-acre gravel packed storage yard are included.
Despite its significant growth to date, the Company offers great opportunity for further growth by expanding its territory, adding personnel and offering additional service lines, as the area’s gas and oil fields have significant growth potential. The Company also believes that there is a need for additional equipment in the area and, if proper investment is made, rental income could be increased significantly.
The Company has enjoyed low-employee turnover and currently employs twenty-three (23) full time employees, most of whom have significant tenure with the Company. In addition, the management team is willing to continue with the growth of this Company.
Looking for a Buyout or Recap
Information on this Oilfield Service Acid Pumping & Tool Rental Business For Sale:
W. Brad Troutman
APEX Mergers & Acquisitions LLC
Inventory: $1.0m (adjusted at time of closing)
A/R’s: $575k (30 day turn around)