Cash Flow Strong Fuel Delivery & Services Company

This well-known Fuel Delivery and Services Company provides 24/7 quick response emergency services to large private and public organizations in the New York Metro area. During a utility outage, the company personnel will remain on site to maintain the customers’ needs for as long as required. The firm enjoys significant operating margins, documented profitability and significant owner benefit. This business currently operates from a conveniently located 5,000 sq. ft. leased warehouse in New York Metro with office space and additional parking.
The company enjoys a competitive advantage in the service area through its many emergency response contracts with large corporations and is poised for accelerated growth.
It is projected that a new owner will obtain significant additional growth by expanding the direct sales efforts to service additional customers with a minimal investment of $250,000. The company projects an annual revenue growth rate under such premise of 10%-20% per year with continued high gross margins.
The company has been fully reviewed and conservatively appraised by an accredited national valuation firm at 4.5x EBITA. A full valuation report is included and there is $200,000 in Net Working Capital plus another $835,000 in Fixed Assets included in the deal. The business is pre-qualified by an SBA lender subject to buyer’s financials, and by implementing the proposed deal structure an owner operator will obtain more than $540,000 benefit in after-acquisition-debt cash flow in Year #1 – 65% return on equity investment.
A comfortable transition period will be provided by the owner who truly wants to see the business continue to flourish. Seller will consider a consulting agreement thereafter. A very well trained and highly qualified team will stay in place and support the new owner in all aspects of the business.