Profile No. CB-0589, O'Neal Water Supply
|Profile No. CB-0589
||O'Neal Water Supply
|Sic Code: 494102
|Gross Sales: $122,198
||Sellers Discretionary Earnings: $110,509
|Value of Assets Included:||Inventory Included:|
|Asking Price: To Be Suggested
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 2009 increase of 4% will increase the sales to $130,549. 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.
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