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NTX Established Water Well Drilling-Service Contractor For Sale

Dallas Fort Worth, Texas, US
Asking Price:
$3,000,000 Furniture / Fixtures and Inventory / Stock included
Sales Revenue:
$2,000,000
Cash Flow:
$522,392

The Company is a 40+ year established water well drilling and well service contractor serving residential, commercial, industrial, and agricultural customers across the greater Fort Worth and North Texas market. The Company drills new water wells and, just as importantly, services and maintains the large base of wells it has installed across the region over many decades. Core services include water well drilling, well and pump service, submersible and booster pump replacement, pressure tank installation, and pressure cementing. The business holds multiple state driller and pump-installer licenses and maintains membership in recognized national and state ground water associations.
A large share of revenue comes from recurring service work on an estimated 5,000-6,500 installed base of wells the Company drilled in prior years. Pumps, pressure tanks, and booster pumps installed 15, 20, and 30 years ago continue to age and need replacement, which drives steady, repeat service demand. The Company has earned a strong regional reputation across generations and wins most of its work through word of mouth, referrals, and repeat customers, with very little paid advertising. The owners do not bid as the cheapest option; they compete and win on quality, reliability, and reputation.
The business produces strong cash flow and the sale includes ~$2,200,000 of net tangible assets at fair market value, anchored by a fully owned fleet of drilling and service equipment carrying no loans or leases. The business will be delivered free and clear of all liabilities.
The Company operates with six full-time and one part-time employees, including drillers, service technicians, and office staff, many with long tenures of 20 to 35+ years. The remaining co-owner, an experienced licensed driller, is willing to stay in an ongoing field role through a transition and is open to rolling a portion of the sale proceeds into the buyer’s company. The combination of a 40+ year history, a deep installed customer base, an owned equipment fleet, and a willing, knowledgeable driller makes the Company an ideal bolt-on for a larger well drilling company expanding into the fast-growing North Texas market.
Industry conditions favor a new owner. Falling groundwater levels across Texas and the country keep driving demand for new wells, deeper wells, and well rework, while ongoing pump and equipment maintenance generates recurring revenue. North Texas continues to see strong population growth and development outside municipal water service, a primary driver of private well demand.

Note: Seller prefers to sell to a strategic purchaser already operating in the water well drilling or ground water industry. Other prospective purchasers must demonstrate relevant industry ownership or senior management experience plus proof of funding to qualify.
Purchase price: the asking price for the assets of the business is negotiable. If required by a commercial lender, the seller will consider financing up to 10% of the price to a purchaser qualified/approved by the seller. All financing is to be personally guaranteed by the individual principals of a prospective purchaser. Seller prefers to sell for all cash. Seller is also open to roll-over equity. The assets include net working capital valued at $125,000 and ffev (furniture, fixtures, equipment and vehicles) valued at $2,085,000. The price will be adjusted for actual net working capital as of the sale date.
Note: The sale of a business is confidential and discreet; please do not visit the business or speak with any employees or owners.
All statements, figures, and values are subject to a prospective purchaser’s due diligence. The information furnished about the business and its financials has been prepared by or is based upon representations and information supplied by the seller and has not been independently verified.

Property Information

Real Estate:

Lease

Lease Terms:

The business operates from a ~5-acre fenced yard with two buildings totaling ~15,500 SF (~1,672 office + ~13,828 storage/warehouse), all equipment stored under cover. The real estate is available to a qualified buyer for ~$25,000/month as a long-term lease plus renewal options or for separate purchase. The operating footprint is flexible; the business can run efficiently on ~3 to 4 acres, leaving room to reduce occupancy and cost.

Leasehold Rent:

$300,000 per annum

Premises Details:

The business operates from a ~5-acre fenced yard with two buildings totaling ~15,500 SF (~1,672 office + ~13,828 storage/warehouse), all equipment stored under cover. The real estate is available to a qualified buyer for ~$25,000/month as a long-term lease plus renewal options or for separate purchase. The operating footprint is flexible; the business can run efficiently on ~3 to 4 acres, leaving room to reduce occupancy and cost.
Furniture, Fixtures, & Equipment (FF&E): Included in asking price. The owned fleet includes a drilling rig, pulling units, water truck, skid steer, support trailers, tools, pipe and casing inventory, plus office furniture, fixtures, and service software. No equipment loans or leases.

Business Operation

Expansion Potential:

The business earns leads through proven tactics including: 1) Earning repeat and referral business from a large installed customer base, 2) Leveraging a multi-generation regional reputation, 3) Fielding inbound calls and emails from property owners needing water, 4) Maintaining membership in national and state ground water associations. A new, energetic owner can further increase sales and profits in many ways: 1) Pursue established new-construction builders for new well work, 2) Target municipal, city, and water-plant well and pump-station contracts, 3) Add water testing and treatment to the service mix, 4) Expand into geoexchange and geothermal borehole drilling, 5) Scale crews and equipment across the greater North TX market, 6) Grow recurring pump and well-service revenue, 7) Build digital presence and SEO to capture more inbound demand.

Competition / Market:

The industry is fragmented; Texas alone has an estimated ~1,000 to ~1,400 licensed drilling and pump-installation companies, and roughly half of all firms nationally employ fewer than five workers. The Company differentiates through its multi-generation reputation, 40+ year operating history, multiple state licenses, extensive well records, and a large installed service base. Falling groundwater levels and continued North TX growth keep demand strong, and the business has thrived despite competition.

Reasons for selling:

Retirement

Employees:
6 FT + 1 PT
Years established:
40+

Other Information

Support & training:

Seller will train buyer for 4 weeks included with the purchase price. Seller is willing to provide additional training/support at mutually agreed compensation for a finite period.

Owner financing:
Owner financing is available. Please contact the seller for more information.
Financing available:

Price NEGOTIABLE. Seller will consider financing up to 10% of the purchase price to a Purchaser qualified/approved by the Seller. Seller is also open to rollover equity

Furniture / Fixtures value:
$2,085,000 - included in the asking price
Inventory / Stock value:
$75,000 - included in the asking price
Related Documents:
Relocatable:
This business can be relocated