Business Description

5-15 Year Customers, Seeking New Majority Owner

The Company is a mechanical services company that since 2017 provides installations, repairs, and maintenance for gas compression systems. Gas compression utilizes specialized machinery to increase the pressure of gases, facilitating their efficient transportation and storage. The operations are primarily in TX, NM and OK and can expand globally. Customers are oil and gas companies on the production side, not the drilling exploration side. Thus, oil and gas prices are not correlated because the equipment is already on the ground and the Company services the equipment on each site for an average span of 5-15 years.

The TTM revenue is projected to be $7.7M at the time of closing (October 2024). The SDE was derived from the actual SDE from November 2023 to May 2024 and the projected SDE for June to October 2024.

Detailed Information

Real Estate: Owned – Included in asking price

Facilities: The company owns homes where the technicians stay during their 2-week shifts. These are on the balance sheet and will be included with the sale.

Competition: Natural gas compression is a process used in the oil and gas industry to increase the pressure of natural gas, making it easier to transport over long distances through pipelines. Consumer demand for natural gas continues to grow year over year.

Growth and Expansion: There are massive growth opportunities, with the company estimated to be at $200 million in revenue in the next 5 years for the company within their current market. o 100+% growth rate for ’22 to ’23 o Additional 15-20 technicians per year needed to meet the growth. o Customer demand exceeds supply by over 4x. Limited only by Technicians. o Growth option to vertically integrate by owning the gas compression equipment or adding a shop to service make-readys. Would need additional capital.

Financing: The owners wish to roll some equity (20-30%). Seller financing available.

Support and Training: Small, decentralized competitor.

Growth & Expansion: The key owners are planning to stay with the business so they would continue to handle operations and maintaining customer relationships.

Reason for Selling: The owners are seeking a growth partner to take the business to the next level.