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Infrastructure Support Services

Multiple Revenue Streams

$4,372,000 - Auckland

#180222

detail

This is a superb opportunity to purchase two established and complementary infrastructure support services businesses based in Auckland. Service offerings to their residential, commercial and industrial customers include cleaning, disposal and servicing, via the operation of vacuum loading tankers for liquid waste removal, jetting and hydro blasting units.  Bulk water carting tankers are used to complement supply to the water blasting trucks when required. 

Hydro vacuum excavation combines a powerful water jet with a vacuum unit that enables the safe identification and installation of services (water, gas, electric, sewer pipes, phone, and fibre optic cables) without existing cables and pipes being damaged by machinery.  Hydroblasting uses high pressure water jets to clean surfaces- storm and waste water lines, cleaning council owned assets, line flushing and pipe cleaning, plant and commercial cleaning, construction site cleaning and street cleans and emergency spills.  Hydroblasting is suitable for residential, commercial and industrial applications.

The businesses operate a fleet of hydro excavators, trucks, tankers and vans. All the major assets are independently revalued on a regular basis and as at October 2021 were valued at $4,087,000. The opportunity therefore exists to purchase these businesses where 93% of the price is backed by tangible and operating assets.

The business runs with a dedicated staff of 18, including the owner, with all but 3 operating the equipment and providing support services. The majority of staff have been with the business between 3 and 17 years, and the owner since inception.

Business Strengths

  • Known brands in industry
  • Fundamentally simple business model
  • Small team of staff to manage
  • Good database of residential, commercial and industrial customers 
  • Ministry of Health registered
  • Monday to Friday operation
  • 24 hour emergency call out service
  • Revenues from multiple business sectors

The ideal owner of this business could be someone who has a sales and marketing or business development background and / or operations management background and is comfortable operating in the customer base the businesses have. Or they may be an existing service business looking to expand their existing product offering and who can leverage their existing experience to the benefit of a wider customer and product base.

Asset Value: $4,087,000 (independent asset valuation)

Net surplus: $420,431 (actual average results for 4 years to FY21) EBPITD 

EBPITD - Earnings before One Proprietor, Interest, Tax and Depreciation

Contact: Andrew Larsen
Office: Auckland

Confidentiality Agreement for Business Reference 180222, Broker Name Andrew Larsen

Between Tabak Business Sales and the Interested Party.  The Interested Party must be an individual's name, NOT a company name.

In consideration of Tabak Business Sales (being any or all of Tabak Ltd (Licensed under REA 2008) and/or Tabak Business Sales Limited (Licensed under REA 2008) and their respective business brokers) entering into discussions relating to the possible acquisition of the assets or shares of any business(es) presented to me by Tabak Business Sales and specifically the business referenced above, I/We hereby agree and undertake as follows:

  1. To treat as totally confidential the identity of the business(es) disclosed to me and any details as to its operation or financial accounts;
  2. I acknowledge that the financial records, customer and supplier details and other information relating to the business to be disclosed to me shall at all times remain the sole and exclusive property of the Vendor and that such information is of competitive value and of a confidential nature and that loss or damage would be sustained by the Vendor if such information should be used or divulged by me for any purpose other than the evaluation of the purchase of the business or should it become into the possession of an unauthorised third party;
  3. Not to disclose the identity or any details of the operation or financial accounts to any third party (except my accountant or legal advisor who shall agree to respect this requirement for confidentiality) unless expressly authorised in writing by the Vendor or by Tabak Business Sales;
  4. Not to make an approach to the Vendor of any business disclosed to me by Tabak Business Sales, or the business' staff, customers or suppliers without prior arrangement with Tabak Business Sales and to refer all queries through Tabak Business Sales;
  5. We acknowledge that Tabak Business Sales is the introducing agent, and that all offers and deposits for the business, shares or property will be conducted through that office;
  6. If, I as a potential buyer breach clause 4 of this agreement and buy directly or indirectly this business from the Vendor of the business quoted then I the buyer will be responsible for any loss of commission due to Tabak Ltd (Licensed under REA 2008) and/or Tabak Business Sales Limited (Licensed under REA 2008) as the case may be;
  7. If, I as a potential buyer breach clause 1, 2 or 3 of this agreement I undertake to indemnify Tabak Business Sales against any actions, proceedings, costs, claims, demands or liabilities which you may suffer in consequence of that breach;
  8. That all information is received for no other purpose than the evaluation of the investment potential of the business;
  9. If I decide not to proceed with the investment, I agree to immediately return to Tabak Business Sales all written information supplied by it and retain no copies and to delete any electronic records including all emails and attachments relating to the business(es);
  10. Acceptance by Electronic Mail: Execution of this Agreement and transmission between the parties by electronic signature and email response each to the other or their representative will constitute offer and acceptance and satisfy the requirements of Section 5 of the Electronic Transactions Act 2002.
  11. Privity: For the purposes of Part 2, Subpart 1 of the Contract and Commercial Law Act 2017, the parties acknowledge and agree that the agreements and undertakings given by the recipient in this Confidentiality Agreement are given for the benefit of the Vendor and its related companies and representatives, and are enforceable at the suit of all or any of them.

Before proceeding with this Confidentiality Agreement, it is recommended that any prospective purchaser

  1. seeks legal advice.
  2. may or may need to seek technical or other advice and information.
  3. review Tabak Business Sales’ internal process in relation to any complaints.  A copy of these can be found here.
Mandatory Fields*