Highly Profitable Niche Service Business For Sale!

This opportunity is presently under exclusive LOI and therefore cannot be discussed. Please enter your information below and we will contact you should the opportunity become available in the future.

Building a niche business that specializes in a type of service that every person relies upon but seldom thinks about has enabled this Company to consistently generate high levels of profitability. Over the years the Company has adapted to a changing marketplace and new technologies and has emerged as a leading provider in the West Michigan area of directional drilling services with a specialization in optical fiber installation. Its expertise, state-of-the-art equipment, and unique capabilities are sought by a wide range of customers – from municipalities to contractors to communications companies.

The Company operates out of a well-kept, 9-year-old warehouse and office facility located on 3 acres in Ottawa County, MI. The property is classified as Industrial with Structure. The building is owned by a separate LLC and leased to the business entity. Real estate is available for sale or lease. 
The motivation for the sale is that one of the owners would like to retire. That particular owner handles the management of the back office. The owner who manages the field and many of the customer relationships desires to remain with the business and would consider retaining minority share equity.
 
fiber optic utility drilling company for sale

The Company has a long-term contract with a large and fast-growing municipality to install optical fiber.

Financial Overview*

2016 Revenue: $2,097,903

2016 Gross Profit: $1,357,595

2016 Net Profit: $872,550 

2016 EBITDA: $879,752 

2016 SDE: $914,598**

 

All figures taken from 2016 Tax Return.*
**SDE reflects paying the owner that wishes to remain with the company $100,000/year salary, which he is agreeable to with the right offer.

 

underground construction company for sale west michigan

The company is poised well to take advantage of pending infrastructure spending, particularly as it relates to directional drilling, sewer lines or fiber optic cable.

Investment Highlights

High Barriers to Entry – Breaking into the underground construction business is not easy, which helps to explain why this Company is so profitable. There are high barriers to entry, including high equipment costs, a wide range of technical knowledge, and a long history of proven performance.

 

Owner Open to Extended Transition Period – Transitioning the Company to a new owner that has limited knowledge of the industry will take time and the owner is aware of this. Fortunately, the owner still loves the work and is happy to stay on for an extended transition period up to five years.

 

Multi-Year Contract – The Company has a long-term contract with a large and fast-growing municipality to install optical fiber.
 
 
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One of the existing owners would like to remain for up to 5 years and is willing to retain equity.

Growth Opportunities

Aging Sewer Infrastructure – Infrastructure in the United States is sorely in need of investment and many of West Michigan’s aging sewer lines are no exception. As municipal finances continue to improve and with the very real possibility of a large infrastructure spending package likely to gain bi-partisan support in 2017, antiquated and crumbling sewer lines may finally be addressed. New materials that can be guided into existing sewer lines, inflated and then allowed to cure in place, will allow for a less disruptive and expensive means of sewer upgrading. This would fit well with the Company’s capabilities and strengths.

Optical Fiber Market – Consumers have increasingly demanded high-speed internet in their homes and on mobile devices. Thus, wireless carriers and cable providers are installing fiber-optic cable at a rapid pace. Additionally, large companies and local governments are increasingly operating their own private optical fiber networks, also knowns as dark fiber networks, so that they can better control scalability, network management and technology evolution. IBISWorld predicts that the next five years will bring continued revenue growth for the industry. With extensive experience in this field, this Company is well poised to continue to grow with the optical fiber industry.

The BEST way to receive confidential information about this opportunity is to fill out the form below.

Upon doing so you will receive a link via email to review and sign our confidentiality agreement. Once signed we will be able to further the conversation and send you the confidential Offering Documents. Please contact us at info@caldergr.com with any questions. Interested parties must demonstrate proof of financial capability, sign a Non-Disclosure Agreement, and answer a few brief questions. Inquire today about this highly profitable service business for sale!

Calder Capital, LLC

Click to Call: 616-965-2771

Toll Free: 844-452-4445