Business Description

Business provides contract services in fuel tank testing, removal and installation. Breakdown is roughly 60% residential customers and 40% commercial customers. Commercial is defined as office buildings, strip malls, gas stations and municipalities. More broadly, a customer is anyone who requires a fuel tank to be tested, serviced, installed or removed. Company employs nine people. It owns and operates equipment with an original cost in the $700,000 range that has an estimated current value of roughly $150,000. Company rents office space of about 900 sq.ft. for $800 per month and this also includes space to park the Company's mobile equipment. Owner does not have personal licenses but his manager holds an S1 license for the state of Connecticut. A purchaser will need to be affiliated with someone holding this license. A home improvement license will also be needed on residential jobs. For the year 2010 sales of $973,000 were down about 18% from 2009 while net income was $63,773 before add-backs for 2010, down 64% from 2009 per the Company's financial statements. Owner cash flow including add-backs to net income was in the $140,000 range for 2010. Economic factors were the prime reason for the decline in 2010 versus 2009 plus the fact that the owner has been retired since 2008 and has a limited role. Business is operated by the manager.

Detailed Information

Facilities:

Business has a significant amount of mobile equipment and testing assets purchased ov er the past 17 years. Current value is estimated at $150,000. The Company leases 900 sq. ft. of office space plus has access to parking all its automotive assets on site for a total of $800 per month.

Competition:

There are several companies in the state performing similar services. However, business is capital intensive and requires licensing so there are barriers to competition.

Growth/Expansion:

The business is tied somewhat to real estate activity particularly as it relates to residential housing sales. These have been weak for several years as the Company's sales have been weak but should begin to improve in coming months.

Support/Training:

The business requires a certain amount of specialized training along with the need of the purchaser to have an S1 license for the state of Connecticut to perform certain routine jobs at customer locations. The manager now has this license.

Reason Selling:

Owner is retiring.