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Full Editorial Writeup
This Oklahoma-based environmental services company provides wastewater remediation services to municipalities and oil & gas companies, along with pit cleaning and power washing services. Built over 10 years in a market with strong regulatory tailwinds, the business has established itself as a reliable contractor in the intersection of municipal infrastructure and energy sector compliance.
The company operates with $4.95M in equipment and inventory at fair market value, suggesting a capital-intensive but asset-backed business model. With full staffing and management systems in place, the owner functions at the strategic level while day-to-day operations run through experienced key employees. The business serves two recession-resistant end markets - municipal infrastructure maintenance and oil & gas regulatory compliance - both driven by necessity rather than discretionary spending.
Why we like it
- Earnings Quality: $1M cash flow on $4.35M revenue delivers 23% margins in a capital-intensive business, with the owner positioned at CEO level rather than doing the work. The 6.75x multiple reflects strong fundamentals and the $4.95M equipment base provides substantial asset coverage for downside protection.
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