Should Heather clean septic systems in Montana and why is the answer no? - Acquisitions Anonymous 256
Dec 22, 2023
auto_awesome
Michael Girdley and Heather Endresen discuss the potential acquisition of a septic services company in Montana. They analyze the company's market leader status and high demand for septic services, but acknowledge the limited buyer pool for such a niche business. The podcast also covers topics like gut biome and its impact on health, the influence of food choices on obesity, and the profitability of businesses in Montana.
The septic services company in Montana offers a range of services, including septic tank-related work, drain sewer septic line cleaning, portable toilets for events, and support for wildland fire crews, making it a potentially stable and profitable business.
The septic services market in Montana is dominated by another company, A1 Sanitation, suggesting potential acquisition or customer transition opportunities, while also highlighting the limited growth potential due to the small market size and established competition.
Deep dives
Overview of the Deal
The podcast episode discusses a deal for a septic pumping system company in Whitefish, Montana. The business was listed for $3 million. The episode points out both positive and negative aspects of the deal. It mentions that the company offers services such as septic tank locating and pumping, drain sewer septic line cleaning, portable toilets for events, and support for wildland fire crews. The business has been established for over 25 years and is considered a market leader in the area. The episode highlights the potential stability and profitability of the business, given the consistent demand for its services.
Market Dominance and Competition
The podcast episode explores the market dominance of the septic services company being discussed. It suggests that the company may not be the largest provider in the area, despite its long establishment. The episode mentions another company, A1 Sanitation, which seems to be the dominant player based on customer reviews. The discussion speculates on whether A1 Sanitation would acquire this company or if the smaller company's customers would transition to the larger competitor. It also touches on the potential growth opportunities and low competition in the area, given the rising population and the need for septic services in new homes.
Considerations and Potential Buyers
The podcast episode raises important considerations for potential buyers of the septic services company. It emphasizes the limited growth potential for the business, given the small market size and established competition. However, it suggests that the business could be an attractive bolt-on acquisition for larger companies in the industry or private equity firms looking for a platform in Montana. The episode also mentions the importance of researching the area's growth trends and customer needs. It concludes by discussing the potential profitability of the industry and the diversification of services offered by the company, including portable toilets and support for wildland fire crews.
In this episode with Michael Girdley and Heather Endresen, they explore the potential of a septic services company in Montana. The company offers various services, primarily focusing on septic tank-related work, and generates significant revenue. They speculate that the business may be most valuable to a buyer already established in the area. While there are opportunities, they acknowledge that the buyer pool for such a niche business might be limited.
CloudBookkeeping offers adaptable solutions to businesses that want to focus on growth with a “client service first” approach. They offer a full suite of accounting services, including sophisticated reporting, QuickBooks software solutions, and full-service payroll options.