Below Ground Sampling & Testing
Soil, water, and well for environmental services!
Environmental services in groundwater, soil, soil vapor, well installation and abandonment! Principally located in the Chicagoland area, this professional environmental drilling company has been providing expert soil and water evaluation services since 1996. The owner spends less than 15% of his time in the field and this can be easily absorbed by current employees. They have completed projects in 27 states, but typically focus their efforts on acquiring work in the Heartland, specifically Illinois and Indiana. The team of seven offers services that include testing for groundwater, soil, soil vapor, well installation & abandonment. When an environmental consultant needs subsurface samples, this team drives to the site (7 trucks & 5 trailers included), drills the sample, and provides a workspace for an outside consultant to do their testing. The $256,561 worth of equipment such as specialty drilling rigs, and geoprobe tools are included in the asking price with on the shelf well materials, supplies, and fuel to be added.
Currently, this company does not do any in-house sample testing, they simply collect the sample and provide it to the environmental consultant. Adding an analyst, however, is an area for growth that could potentially bring in additional projects. Additional areas of growth can be found in geotechnical drilling as well as maximizing utilization and assets, so there is great potential for growth without increasing overhead.
The business operates from a 3,000 square foot space within a steel frame building perfectly suited to the company with room for expansion. With two offices, a very large shop, and three overhead doors, there is plenty of workspace and storage, as well as room for indoor parking.
- Year Established: 1996
- Headquarters: Chicagoland, with satellite in Cincinnai
- Service Area: Work is mostly completed in Illinois and Indiana
- Clients: Environmental consultants, commercial property owners, realtors and bankers
- Services: Subsurface sampling for environmental testing: groundwater, soil, soil vapor, well installation and abandonment
- Building: 3,000 sq. ft.: Steel frame building with office & shop, 3 overhead doors with indoor parking
- Reason for Selling: Retirement
- Employees: 7: 5 FT, 1 PT, 1 FT 1099
- Seller Training Period: 1 year
- Growth Opportunities: Build in-house analytics, maximize utilization, add geotechnical services, quarterly ground water monitoring, NPDES sampling
- Current Owner’s Responsibilities: Owner spends less than 15% of his time in the field- this can be easily absorbed
- List Price: $1,475,000
- Gross Sales:
- 2019: $1,169,620
- 2018: $1,094,010
- Cash Flow:
- 2019: $375,167
- 2018: $241,173
- Assets Included in Purchase: $256,561
- Equipment and Expendables: Specialty drilling equipment, geoprobe tools
- Vehicles: 7 trucks, 5 trailers
- Secured Work: This business books out projects 1-3 weeks in advance.
- Intangible Assets: Positive word-of-mouth referrals, long-term clients, diverse client base, diverse project sizes, substantial history of successful operations
*amounts may vary
Cash Flow Analysis
|Description of Financial Statement||P&L Statement||Tax Return||Tax Return||Notes|
|Net Income Shown on Financial Statement||$145,652||$178,871||$32,471|
|Compensation to Owner with Tax||$44,473||$46,584||$41,070|
|Meals & Entertainment & Travel||$384||$18,506||$18,571||Personal expense|
|Contributions/Donations and Gifts||$200||$150||$4,804||Non-onward going expense|
|Health and Life Insurance||$26,337||$33,231||$29,863||Personal expense|
|Cell Phone||$659||$3,589||$2,245||Personal expense|
|Vehicle/Auto, Fuel, Insurance||$10,719||$19,291||$20,737||Personal expense|
|Retirement Contribution||$0||$1,110||$1,110||Paid to owner|
|Rent to Owner||$26,337||$29,771||$38,695||Personal expense|
|GM to Replace||$-46,666||$-70,000||$-70,000|
|Generator for Truck||$0||$3,952||$0|
|Engine in Geoprobes||$10,000||$0||$0|
|Seller's Cash Flow = Total Addbacks + Net Income||$254,359||$375,180||$241,173|
|Profit Margin||30.97 %||32.08 %||22.03 %|
- 32% profit margin in 2019
Typical Clients and Services
- Environmental consultants
- Commercial property owners
- Subsurface sampling for environmental testing
- Soil vapor
- Shallow and small diameter monitoring well installation and abandonment services
Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement.
Total Employees: 7
- 5 Full-time
- 1 - FT 1099 Contractor
- 1 Part-time
- As needed assistance
- Build in-house analytics in full revenue stream
- Maximize utilization without additional overhead
- Add geotechnical testing
- Expand current marketing efforts
- Include private utility locating services
- Add NPDES sampling
- Institute quarterly monitoring services for ground water sampling
- Expand to remediation system operation and maintenance services as well as earth work services for small remediation jobs
Purchase Price: $1,475,000
12.5%Buyer Down Payment: $184,375
12.5%Seller Financing: $184,375
75%Bank Loan: $1,106,250
Seller financing 6-year term at a rate of 6% equals a monthly loan payment of $3,479.
Bank loan 10-year term at a rate of 6% equals a monthly loan payment of $12,421.
After business expenses and loan payments, a buyer with a 12.5% down payment of $184,375 would retain a profit of $166,352, which results in a 90% return on investment in the first year.
A lender is required to have a minimum 1.25 coverage ratio for any business loans extended. At a proposed purchase price of $1,470,000 with the terms listed above, the coverage ratio is 1.87.
Please note that the decision of whether to extend a loan on any sale belongs to the bank, and this document does not guarantee specific terms or verify that financing is available.
Offer Price: $
% Buyer Cash Down at Closing: $
% Seller Carry Back via Promissory Note: $
year term at a rate of %
% of Purchase Price secured by Buyer and Seller
Total Bank Loan Need: $
% of Purchase Price
Desired Loan Type:
Desired Bank Terms: year term at a rate of %
Total Business Assets, Inventory, and A/R: $
Total Undercollateralized Loan: $
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Fixed Charge Coverage Ratio
The bank will require a minimum ratio of 1.5 to be lendable.
2 year avg Cash Flow
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Buyer's Net Operating Income (NOI)
The amount of money the Buyer will retain as profit.
2 year avg Cash Flow
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Buyer's Return on Investment (ROI)
The rate of return on the Buyer's down payment.
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