Business Is Available for Unlock!
Industrial Water Treatment Service
An ultra pure water deionisation service supplying semiconductor manufacturers, aerospace firms, hospitals and data centres under five-year contracts, at SDE margins above 35%.
Business Highlights
- Five-year contracts with semiconductor, aerospace, hospital and data centre clients
- Four consecutive years of revenue and earnings growth
- SDE margins consistently above 35% across every reported year
- Residual income model built on exchange tank service and monthly equipment rentals
- Serves industries where water purity is a process requirement rather than a preference
Considerations / Questions to Ask
- The higher SDE figure quoted in the listing is the seller's forward projection, not a result. Current SDE is $375k. Treat the projection as a forecast and ask what it assumes.
- Five-year contracts are the core asset. How many are there, when do they expire, and how concentrated is revenue among the largest?
- Semiconductor and data centre demand in Phoenix is real but cyclical. What happens to volume in a downturn?
- Exchange tank service needs regeneration capacity. Is that in-house or bought in, and what does it cost?
- Are the contracts assignable on a change of control?
Opportunities
- Exchange tank service is genuinely residual, and the customer cannot stop buying without stopping production
- Phoenix is in the middle of a semiconductor and data centre build-out that needs exactly this service
- Five-year terms give a buyer visibility most service businesses never have
- The same trucks and the same routes can carry more tanks without proportional cost