Oneal Water Supply
Location Colorado,United States
Asking Price Range $500K - $1.0M
Gross Revenues $116776
Net Profit / Cash Flow $88291
Cash Flow Type EBITDA
Seller Finance Yes
Year Established 1957
Number of Employees 1 - 3
Relocatable No
Number of Employees 1 - 3
Real Estate Owned
Training As required by purchaser.
Reason for Sale Owner has several business enterprises.
Description This company provides water to Baxter Colorado, a small community just East of Pueblo with approximately 165 homes and 6 businesses. The company has the right to 80 acre feet of water, and by augmentation may purchase another 40 acre feet. The business is controlled by the Public Utilities Commission and the prices to the customers are regulated by the PUC. Currently the customers pay a flat fee of $58.75 per month; however the company has received an increase of 4% for 2008 and an approval for a 2% increase for the next 3 years.
The water company has been in place for 50+ years. The present owner purchased the business in 2001. Previous owner had replaced approximately 2000 ft of main lines and valves. The pump house has been updated with new chlorinators and controls. The pumps are approximately 12 years old but very well maintained and alternated periodically for maintenance purposes.
The 2008 increase of 4% will increase the sales to $125,377. Installation of meters would significantly reduce the household consumption and therefore reduce the costs of augmentation, thus increasing the net profit of the business. Water is a resource that will always be in demand. This small community has been serviced by this company for some 50 years and the need for water will always be present. The costs associated with individual homeowners obtaining alternate sources of water would be cost prohibitive. This is a great business investment for a family trust or a retiree seeking a secured return on the investment. Water is a commodity that will not depreciate regardless of the economy.
Business can be financed through local bank, or possibly some owner financing. Contact for more information on this Water Supply business for sale.
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