Renowned and Profitable Septic Tank Company For Sale in Miami
Smells Like Potential for a Motivated Entrepreneur Through Acquisition
Silverwave Field Notes combs through and analyzes thousands of businesses available for sale that may be of interest to entrepreneurs looking to acquire an existing business. We are not affiliated with the business listed for sale unless otherwise disclosed. The business highlighted below is represented by Raquel Afriat of VR Business Brokers.
Business Overview
Longevity and Reputation: With over 65 years of experience, the business has built a strong reputation for integrity and effectiveness. This longevity is a significant asset in terms of customer trust and brand recognition.
Specialization: Focusing exclusively on residential and commercial septic systems and tanks gives the company a specialized niche in the Miami area.
Range of Services: The business offers a comprehensive range of services, from inspections to installations and repairs, which diversifies its revenue streams.
Financials
Sales and Cash Flow: Total sales of $2,838,810 and a cash flow of $752,944 indicate a healthy, profitable operation.
Equipment and Inventory: The inclusion of $800,000 worth of equipment (FFE) and $200,000 in inventory in the sale is a significant value addition.
Operating Hours: The business operates six days a week, suggesting a strong customer demand and operational efficiency.
Operations
Employee Structure: A team of 15 full-time employees and a manager indicates a well-staffed operation. The owner’s involvement in the business is moderate (30 hours per week).
Real Estate: The business operates on a leased land with storage owned by the seller, with a relatively low monthly rent of $3,000.
Market Position and Competition
Limited Competition: Being one of the few master septic contractors in the area, the business enjoys a competitive edge.
Customer Loyalty: A high percentage of repeat customers over 20 years demonstrates strong customer loyalty and satisfaction.
Local Focus: Currently focusing on specific areas like Coral Gables, Pinecrest, and Palmetto Bay, which suggests a concentrated market presence and operational efficiency.
Potential for Growth
Expansion Opportunities: The seller notes significant potential for ambitious expansion, such as servicing additional areas or increasing the fleet.
Marketing Strategy: Current marketing efforts include community newspaper advertising and promotional discounts. There may be opportunities to expand digital marketing efforts to reach a broader audience.
Sale Conditions and Transition
Reason for Sale: Retirement of the owner.
Training and Support: The current owner is willing to assist with the transition for up to 6 months, which is a valuable asset for a smooth handover.
Owner Qualifications: The new owner will need to obtain a Master Septic contractor License, as the current owner will qualify the business until then.
Considerations for Potential Buyers
Owner-Operator vs. Strategic Buyer: The business is ideal for an owner-operator or a strategic buyer looking to expand in this industry.
Real Estate Purchase Option: The possibility of purchasing the real estate could be an additional investment opportunity.
Stable Cash Flow: The consistent cash flow and profitability make this an attractive investment, especially with the robust operational infrastructure in place.
This business presents a stable and potentially lucrative acquisition opportunity. The company’s long-standing reputation, loyal customer base, and limited competition position it well for continued success. However, potential buyers should always conduct thorough due diligence, including a detailed review of financials, operations, and market conditions, to ensure the investment aligns with their goals and capabilities.
