Natural Gas Supplier with Strong Recurring Revenue

Dusty

Natural Gas Supplier with Strong Recurring Revenue

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Est. 1983 June 11, 2020
  • N/AAsking Price
  • $717,591Discretionary Earnings
  • $15,806,595Gross Revenue
  • N/AFF&E
  • N/AInventory
  • N/AReal Estate

Natural Gas supplier serving commercial clients in the Midwest. This is a family-owned business with staying power. Imagine selling an absolute necessity to institutional and commercial customers (hospitals, schools, manufacturing facilities) that always need your product. This is selling natural gas to customers in cold, northern states that need it for operations and to heat their facilities. This is a white collar, customer service business that understands the need to be responsive and helpful to clients that purchase large volumes of natural gas annually to make sure they’re getting the best prices and adequate supply. They’re helping facilities manage one of their major overhead costs- gas for operations and the heating of their buildings.

Primary owner is in his 70’s and has been hands-off for the last 4 years. Two key business managers with long-term experience running the company are in place and would like to stay on and work with the new ownership.

Over 1,000 clients in place, many of which have been with this company for years and some for decades.  A diversified customer base makes this company a reliable, evergreen, recession-resistant cash-cow. Exactly the kind of company you should be looking for in a tumultuous year like 2020!

Owners can live anywhere in the world. Must have good credit and net worth to maintain the credit facility necessary to guarantee the gas purchases.

No gas equipment is owned by Company, only a handful of employees, they don’t touch the gas themselves. (contract with producers, transport/pipeline companies, and the Midwest utility) This is a customer-service-centric, relationship-centric business. (Not an oil-field service business.)

Ideal candidate, besides being financially qualified will have a strong B2B sales background. In our opinion the biggest opportunity for growth is building up the sales force to gain more accounts. Once you get them in the door, the service team knows how to keep them forever, but there’s not real strong sales leadership currently, so numbers have been somewhat flat the last few years. With a fresh look at the sales effort, we believe this company could potentially double in size without having to hire/train additional new service staff. The HQ office team is extremely efficient and knowledgeable.

Key Points

  • Experienced Management Team in Place
  • Low Customer Turnover
  • High Barriers to Entry, Low Competition
  • N/AFF&E
  • N/AInventory
  • N/AReal Estate

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Confidentiality Agreement

Texas Business Buyers, LLC (“we,” “our,” “us”) will be furnishing you confidential information pertaining to one or more businesses we represent (“the Business”). As consideration for obtaining this information including but not limited to a confidential business review (CBR), financial documents, employee information and other trade secrets, you agree that:

  1. All verbal or written information furnished to you pertaining to the Business will be confidential. For a period of five years from the signing date, you will not use this information to compete against the Business, nor will you disclose it to any person(s) or entity(ies) other than those assisting you in its evaluation for the sole purpose of your potential acquisition.
  2. Unless we agree otherwise in writing, you will not contact the Seller, nor will you contact any of the Business’s employees.
  3. If you decide that you do not wish to pursue an acquisition, you will advise us of this, return all information furnished to you, and delete all electronic copies.
  4. If you negotiate with the Seller to purchase or lease the Business or its Assets without our involvement, you will be responsible for paying our full commission and associated damages.
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