Identifying growth opportunities & avoiding low ceilings - septic industry
October 16, 2024
by a searcher from Miami University of Ohio in Chicago, IL, USA
I'm currently searching for a septic business to acquire (pumping/installs/maintenance/etc.). Curious if anyone on here has had experience acquiring businesses in this space. I'm most concerned with identifying growth potential - these markets seem very fragmented without many larger players.. wondering if this is due to any less-obvious major growth inhibitors (outside of things like capital needs for equipment.. hiring challenges, etc.)? Would love to hear of any experiences in this space.. plumbing & hvac seems to be a good comparison - what are the growth ops you look for? How do you figure out if there's a low ceiling?
from Boston University in Albuquerque, NM, USA
- you need to understand the particulars about how the waste is disposed and how this is regulated (variable according to location, this could also be something that limits growth)
-how much of the work is install vs maintaining services
-there are a lot of operations where its a family that owns a truck or two and its run as a business out of their house (this is a pro or con depending on how you see it)
-finding good reliable labor in this area could be tough
-pumping services can be extended to a lot of other areas including grease traps and car wash sumps but the margins may not be as high
-septic is generally in areas without sewer service so think more rural or areas that sewer is limited (a pro or con depending on location)
from Purdue University in Overland Park, KS, USA