This opportunity is a West Michigan-based underground equipment installation and service provider. The Company’s primary offerings include tank installation, tank removal, testing, commercial and retail (gas stations, counties, trucking companies), card readers for fuel tracking, retail communication equipment, and more.
The Company holds the expertise to create complete fuel systems, from tank to pump, for both retail and commercial fueling stations.
For over 80 years, the Company has provided high-quality products by leveraging creative solutions tailored to each project’s needs. Through workmanship that focuses on minimizing long-term costs and never cutting corners, the Company develops long-term relationships with key customers.
The current Owner bought into the Company in 1995 as a co-owner and became the sole Owner in 2004 when he bought out his partner. He regularly interacts with his employees by encouraging them through challenges and helping them find creative solutions. This has developed a solid workforce who enjoy working at the Company and require minimal oversight. He estimates that he could work only two and a half days per week and complete the necessary tasks for his position.
The Company operates out of a 12,000 square foot facility located in West Michigan. The building contains 2,400 square feet of office space, 6,000 square feet of warehouse space, and 3,600 square feet of garage space. The facility was built in 1997 and is in good shape with recent improvements to the parking lot, windows, and overhead doors. The facility’s estimated value is $1,200,000. The Owner is flexible to sell or lease the real estate depending on the buyer’s situation.
The Owner is looking forward to retirement and spending additional time with his family. Upon sale of the Business, he is willing to stay on for approximately one year to ensure a smooth transition for the new owner(s).
Dec. 31, 2020 Inventory: $361,933
Real Estate: The Owner of the Company owns the real estate through a related entity. The Owner is flexible to lease or sell the real estate depending on the buyer’s situation and preference.
2020 Rent: $88,800
Total Building Size: 12,000 square feet
Facilities: The Company operates out of a 12,000 square foot facility in West Michigan. The building has 2,400 square feet of office space, 6,000 square feet of warehouse space, and 3,600 square feet of garage space. The facility was built in 1997 and is in good shape with recent improvements to the parking lot, windows, and overhead doors.
Seller Financing Available: Yes
Seller Note: Limited Seller-Financing Available for Qualified Buyers
Number of Employees: 11 Employees (2 Salary and 9 Hourly)
Year Established: 1941
Support/Training: The Owner is willing to assist in the transition to ensure new ownership is positioned for success. Upon sale of the Business, the Owner is willing to stay on for approximately one year to ensure a smooth transition for the new owner(s).
Reasons for Selling: The Owner is looking forward to retirement and spending additional time with his family. The Business is on solid footing and will provide the new owner(s) with a profitable investment.
(1) Financial Strength: The Company achieved record financial performance in 2020. Despite 6 weeks of shutdown due to the COVID-19 pandemic, the Company delivered $4.2M+ in revenue and $920K+ in SDE throughout 2020. The Company produced impressive top and bottom-line performance by focusing on profitable projects and not being the lowest bidder. While being the lowest bidder can help win projects, it generally leads to lower profitability and corners being cut to stay within budget.
(2) The Ability to Cater to a Large Customer Base with Specific Needs: The Company boasts a competitive advantage over larger competitors by providing a more personal service to each customer. The Company creates custom solutions for each customer to get them exactly what they need without overselling them. The Company generally provides steel tanks rather than fiberglass tanks to better fit the needs of compartmentalization. When the fuel tanks separate fuel types into the grades, the steel tanks split up the grades at a custom level that is not possible with fiberglass tanks. This allows the Company to offer both creative and profitable solutions that are not matched by larger competitors.
(3) Highly Experienced Employees: Combined, the Company’s 11 employees include over 215 years of industry experience, an average of 19.5 years per employee. These employees include 2 service employees, 1 service/testing employee, 4 construction workers, 1 warehousing/dispatcher employee, 1 salesperson, 1 controller, and 1 office administrator. The Company’s employees are highly skilled and boast depth in industry knowledge and experience. Only 2 employees have worked at the Company for less than 5 years, and 7 employees have 20+ years of duty.
(1) Expand Workforce: The Company currently operates with 11 employees, not including the Owner. The Company does have experience operating with more employees and higher revenue levels. In 1998 the Company had 30 employees and $8M in revenue. The Company scaled back to focus on profitability and lighten the load on the Owner but is more than capable of returning to that level. Hiring will need to be focused on the construction and service departments. Additional staff in these areas will increase the personnel’s capacity and allow them to complete more work.
(2) Increase Residential Work: Currently, the Company completes minimal residential work. There is an opportunity to grow and profit to be realized in the residential market. Some of the jobs demanded in this sector are tank removals for fuel-based furnaces, as well as tank installations that are typically used for propane. These are smaller jobs that can fill the gaps between larger commercial and retail jobs while generating additional revenue.
(3) Implement Marketing Strategy and Improve Website: The Company has historically operated with no marketing expenditures. Expanding the marketing budget and investing in the Company’s website could prove to excite additional leads and repeat business for the Company.
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 [email protected] with any questions. Interested parties must demonstrate proof of financial capability, sign a Non-Disclosure Agreement, and answer a few questions related to their background and interests. Enquire today about this Niche Petroleum Equipment Distribution and Service Company for sale!