Years Established:

2003

Property Type:

Real

FF&E:

$ 3,868,335

Inventory Value:

$ 432,805

Real Estate Value:

$ 50,000

Premise Details:

Company is headquartered in a leased 20,000-square foot office and shop facility in Vermont. The facility features a four-bay shop, a separate wet-out facility for the fabrication of CIPP liners, and ample space for expansion. The facility was leased in late 2010, and the lease automatically renews on a yearly basis. Current facility is leased from a separate real estate company owned by the shareholders. The facility is also available for acquisition under different transaction. According to management, operations can be moved to other locations; however, the Company’s current facilities are located in strong geographic markets with very good growth potential and excellent logistic and traffic access. Additionally, moving the operations would be disruptive to the Company’s culture, skill sets, and employee longevity.

Competition:

There is very limited competition from other contractors in the area due to being the only full-service trench less pipeline rehabilitation company in the New England and New York areas. The Company operates in a relatively recession-proof market, where municipalities essentially need to repair broken piping and plumbing systems regardless of bad economic environments. Through its pricing strategies, operational efficiencies, strong management team, and corporate culture, the Company achieved an average EBITDA margin of 12.0% during the last four years through 2012. This significantly exceeded the industry average of 1.4% for the same period.

Expansion Potential:

The Company’s management team has a tremendous amount of experience in the pipeline rehabilitation industry. They are collectively focused on providing quality, timely, and cost-effective solutions, coupled with proactive and responsive customer service. Demand for company’s services is based on population growth, aging sewer and storm pipelines, growth in construction activities, interest rates, inflation, and the overall health of the US economy. This business’s success is attributed to its niche CIPP service offering, quality of its services, quick turn-around-time, dependability, and superior customer support.

Employees:

35

Support & Training:

Owners to remain for a transition period to ensure a smooth transfer of ownership.

Reason For Selling:

Retirement