THE Business for Sale Marketplace

Gross Revenue: $1,700,000

Cash Flow: $391,000

The Company is a seasoned provider of lease services and equipment to clients in the oil and gas industry that specialize in pipelines and pump stations along the Texas Gulf Coast. Lease services include welding, screw pipe make-up and equipment work. Equipment work includes dozers, backhoes and excavators. Customer base consists mainly of oil and gas extraction companies operating along the Texas Gulf Coast. Sales are driven by general pipeline maintenance (40% of sales), pipeline installation (25%), tank farm hookup (25%) and installation of drilling pads and limestone roads (10%). Company operates out of an in-home office and a ten acre piece of land used for equipment storage. Staff totals 13 full-time and 5 part-time employees in addition to the two principals.

• Company enjoys a 20 year reputation for offering reliable products and services.
• Strong client retention rate evidenced by largest client who has been with Company for 16 years
• Recession resistant industry.
• Rising gross profit trend. From 2003 to 2005, gross profit rose from 77.8% to 86.9%.
• Company has a backlog of contracts with a net value of $450,000 scheduled for the next six months.
• Significant expansion opportunities exist in the utilities and municipals industry due to similarities of the equipment and services used in both industries.