Rapid Growth & Strong Reputation
The business is a specialized provider of Horizontal Directional Drilling (HDD) services for essential utility infrastructure and has built a strong reputation as a reliable, rapidly growing company trusted by contractors, utilities, and local governments. This reputation is reflected in the speed at which it has earned customer credibility, with revenues doubling each year since inception.
Solid Financial Performance & Robust Projected Pipeline for Next Year
The company has demonstrated accelerated revenue growth, with revenues doubling each year since inception. As per Seller, Business is on track to generate approximately $12 million in revenue for the current fiscal year, with Seller’s Discretionary Earnings (SDE) of around $1.9 million reached for 2024 and, accordingly to the seller, nearly $4 million expected in 2025. In just the first seven months of the current fiscal year, the company has already achieved approximately $5 million in revenue according to the Seller — nearly matching the full-year revenue of $6 million from the previous fiscal year.
Furthermore, the company is projecting $12M of work in the next financial year (2026), largely stemming from its existing client base.
Valuable Assets & Working Capital Included:
The purchase price includes approximately $4.4 million in assets, consisting of equipment and machinery essential to the business’s daily operations.
Working capital amounting to $500K is also included in the transaction.
Negotiable Deal Structure:
The sellers are open to structuring a deal that includes an earn-out provision, or a vendor take-back (VTB) arrangement for a qualified buyer, under mutually agreeable terms.
Skilled Workforce and Streamlined Operations:
The business is supported by a dedicated and experienced team of 20 staff members, playing a vital role in driving operational efficiency and
profitability.
Operational Strength & Scalability:
The company has streamlined systems, strong client relationships, and repeat business, ensuring recurring revenue and long-term stability. Its proven ability to expand rapidly makes it an ideal platform for strategic buyers looking to scale operations or enter new markets.
Owner-Led Business with Optional Seller Equity Retention and Transition Support
The business is currently owned and operated by active shareholder-operators who are seeking an exit strategy. To ensure a smooth transition, the ownership group is open to a flexible transition period under mutually agreeable terms, with some shareholders willing to remain involved longer than others. The sellers are also open to continuing in an employee capacity or retaining an ownership stake, depending on the buyer’s preferences and alignment with their vision for the business. With an established general management team and a dedicated workforce in place, operational continuity is well-supported.
Potential for Significant Growth:
The business is well-positioned for significant growth through geographic expansion and strengthened marketing efforts. Additional opportunities exist to build on its strong reputation by entering new regions and diversifying into complementary trades or service lines, paving the way to becoming a leading drilling services provider in Canada.
