INTERNATIONAL DISTRIBUTOR & REMANUFACTURER OF DRILL BITS
USED IN THE OIL & GAS INDUSTRY, MINING, & WELL WATER DRILLING
Offered for sale is an international wholesale distributor and re-manufacturer of drill bits used mainly in the oil and gas industry, mining, water well drilling, and foundation construction (for pilings).
The company was started over 25 years ago. The company sells both new drill bits and used drill bits that they refurbish / re-tip. The company is strictly a wholesale distributor. Remanufacturing (re-tipping) drill bits currently accounts for $3 to $4 million in sales each year. Sales of new drill bits account for the remainder of sales.
2010 Gross Revenue: $8,138,373 EBDITA: $1,920,435
2011 Gross Revenue: $9,157,111 EBDITA: $1,477,367
2012 Gross Revenue: $8,373,035 EBDITA: $1,190,641
2013 SIX MONTHS Gross Revenue: $8,526,606 EBDITA: $2,276,319
EBDITA: Earnings Before Depreciation, Interest, Taxes, Amortization
2013 Revenues are expected to exceed $14,000,000.
100% of the business is offered at $11,500,000 as an asset sale, free and clear of debt, plus an earn-out on sales above $14,000,000. The owner is willing to remain in the company on a selective basis and retain some ownership if desired by the acquirer. The EBITDA includes a current salary of $120,000 for a CEO.
Assets included in the sale:
$2,275,000 Inventory at cost
$ 250,000 Estimated value of Furniture, Equipment, Vehicles
... Plus Intangibles