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Full Editorial Writeup
This is a 35-year-old fuel oil delivery and HVAC/boiler service operation serving Long Island, New York. The business moves roughly 4.3 million gallons of residential, commercial, and diesel fuel annually across 900+ active customer accounts, and it runs a parallel burner service division covering HVAC and boiler maintenance and repair. On $14.27M in 2024 gross revenue it throws off $1M in cash flow, which is a thin roughly 7 percent margin typical of fuel resellers where the pass-through cost of product dominates the top line.
The revenue mix is what makes this more than a commodity reseller. Recurring budget plans, automatic delivery enrollment, and service contracts create a sticky, repeat-purchase base, and the burner service division adds a higher-margin labor revenue stream that smooths out the seasonality and price volatility of pure fuel sales. The operation is licensed, bonded, and fully compliant, with a recognized brand on Long Island.
The sale includes $2.5M in trucks and equipment, a meaningful hard-asset package relative to the $5.5M asking price. The business is headquartered on a one-acre commercial property with a 4,000 square foot service facility, office, warehouse, truck bays, and a caretaker rental unit, but the real estate is offered separately for purchase or continued lease and is not part of the asking price.
Why we like it
- Earnings quality is anchored by recurring revenue: budget plans, auto-delivery enrollment, and service contracts mean a large slice of the 900+ accounts re-order without being re-sold each season. That recurring structure plus a service division reduces the customer churn and price-shopping risk that plagues pure spot fuel sellers.
- Heating oil on Long Island is essential, not discretionary. Customers in a downturn still need to heat their homes and keep boilers running, and the burner service division generates demand on emergency breakdowns regardless of the economy, making the cash flow defensible through a recession.
- The moat is operational density and switching friction. Thirty-five years of brand presence, a licensed and bonded operating footprint, and an installed base of service contracts make it hard for a new entrant to undercut, and the integration of delivery plus service locks customers into the relationship.
- The asset package is real and de-risks the entry. $2.5M of trucks and equipment included means a buyer is acquiring roughly $3M of intangible/goodwill value on $1M of cash flow, and the hard assets provide collateral for acquisition financing and downside recovery.
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