40 Year Old Grease Trap and Septic Co, You are Your Own Boss, Easy Path to Growth, Make Good Money

Financial & Assets Details

About the Business

Business Description

Grease & Septic Pumping Company

This is a 40+ year old “essential business” that provides pumping of grease traps and septic tanks which the owner loves the independence it has given him but he is ready to retire. Many clients are on a regular schedule; two week, bi-monthly, three-month, quarterly and six months. This business grows steadily based on steadily increasing demand. The company has no advertising budget with little administrative cost.

The 2022 revenues were 409K with 196K in earnings. The company has revenues that are 90% from grease traps and 10% sewage removal. The company’s profit margin is always between 40% and 50%. He has 90% recurring revenues over the last year and states that he still has 85% of his customers from 5 years ago. He has a very strong client base with many repeat customers, some as long as 20+ years. For example, he services fast food chains, several country clubs, multiple colleges, nursing homes, and many other well know establishments.

He only gives his bank statements to his CPA once a year at tax time. There are no monthly or quarterly PL’s and Balance Sheets, only bank statements. The CPA creates the tax returns and yearly PL’s and Balance Sheets. The bank statements show that in the first 4 months of 2023 that the company had 138.1K in revenues compared to 136.6K in 2022.

The sales price was chosen based on his past earnings, 90% recurring revenues, trend, profit margin, and based on how easy it will be to almost double the revenues with some marketing, hiring an employee who can use the 2nd grease/septic truck. There are two fully functional well-kept grease/septic trucks already owned that are currently worth 210K.

The new owner can create and update website and use his long-time domain name which will already have priority already based on its age and Google’s analytics. He has chosen to work alone but there is opportunity to hire another driver and grow it into a larger business earning even more profits. He does not have an up to date website which is proven by it being 2 pages and shows his home address and home phone number on it. He has done zero search engine optimization(SEO), no social media, and is only shown in the yellow pages. His growth is 100% from word of mouth.

The sales price is 575K which includes 210K in current value of his two pump trucks. There is no need for working capital. This might be bankable for the right buyer. The assets include a 2020 HV International custom pumper truck with a 3500-gallon aluminum tank, high power cummings engine, blower pump, auto transmission, with 69K miles, and is in great condition. A 2004 International pumper truck with a 2500, 5 speed manual transmission that is in good shape. This is an opportunity to own a company where you are your own boss, have an easy path to growth, and can build equity while you are making good money.

The company has built a great reputation and already has the assets to grow this company with very little cost. No specific experience is necessary. The current owner can train the new owner quickly. All you need is a CDL/B Class license that is required to operate these commercial vehicle. The MC # is transferable but the DOT number is not which will take approximately 3 week process unless you already have a DOT.

Location: Denver Metro.

Details:

The owner of the business also owns his customized property and building. The property is 6,250 square feet and the building is 2,920 square feet. It was built in 1967, is metal framed with metal siding, forced air, and he recently spent over 50K remodeling the space. The building has room for both septic trucks, has a large reception area, one ½ bath, and one full bath with a shower, a large office, a large garage that with a garage door where he parks his personal vehicle, and a very large garage with room for both septic trucks, a bar like area, sink area, and room for a lot of storage. There is the potential to get a 3rd grease/septic truck if the buyer wanted to. The price for his location is 800K and it is contingent on the purchase of the business.

The owner will help transition the business for a reasonable salary which he claims will not take very long. He will take you around to all of his jobs so you can meet some of the customers and learn the ropes.

This is a unique opportunity because of the profit margin and that it allows the owner a lot of independence.

Thank you for your consideration,

Jeff C Eisnaugle
Business Broker Colorado, LLC
Direct 303-905-7607
Fax 720-524-6482
jeff@businessbrokercolorado.com

Growth & Expansion

The new owner can create and update website and use his long-time domain name which will already have priority already based on its age and Google’s analytics. He has chosen to work alone but there is opportunity to hire another driver and grow it into a larger business earning even more profits. He does not have an up to date website which is proven by it being 2 pages and shows his home address and home phone number on it. He has done zero search engine optimization(SEO), no social media, and is only shown in the yellow pages. His growth is 100% from word of mouth.

Market Competition:

This is a 40+ year old “essential business” that provides pumping of grease traps and septic tanks which the owner loves the independence it has given him but he is ready to retire. Many clients are on a regular schedule; two week, bi-monthly, three-month, quarterly and six months. This business grows steadily based on steadily increasing demand. The company has no advertising budget with little administrative cost.

Location Details:

The owner of the business also owns his customized property and building. The property is 6,250 square feet and the building is 2,920 square feet. It was built in 1967, is metal framed with metal siding, forced air, and he recently spent over 50K remodeling the space. The building has room for both septic trucks, has a large reception area, one ½ bath, and one full bath with a shower, a large office, a large garage that with a garage door where he parks his personal vehicle, and a very large garage with room for both septic trucks, a bar like area, sink area, and room for a lot of storage. There is the potential to get a 3rd grease/septic truck if the buyer wanted to. The price for his location is 800K and it is contingent on the purchase of the business.

Support & Training

Will support as long as needed

Reason for Selling:

Retiring