Thoughts on fuel delivery service businesses?

by a professional

4 months ago

I have a client looking to acquire a business that delivers heating oil, kerosene, propane and diesel fuels in a cold environment. It has great recurring revenue but the margins aren't great. I know heat pumps are becoming more popular and there are tax benefits to installing, and the general macro trend is that oil is gong away...but these businesses are still earning... Looking for anyone to share their experience in this space or any other comments. Thanks 

0 likes
59 views
4 comments

searcher from University of Richmond

We looked at this sector one a specific deal. We didnt pull the trigger but liked the business opportunity. There are two national players...maybe three...that control a lot of the big revenue clients. Trick may be find a specific underserved niche whose margins make up for a somewhat limited growth opportunity. Happy to talk with you further

4 months ago | like reply | 0 likes

searcher from Harvard University - Harvard Business School

Happy to talk if you'd like. I had a very active thesis for a while in this sector. Sounds like you know the good and bad; if you'd like to talk I did some work re: pace of these trends.

4 months ago | like reply | 0 likes

More on Searchfunder

Just Closed on My First Deal! Reflections and Takeaways for other Searchers

45,152 transactions are available on Searchfunder (now searchable by keyword)

Now everyone has unlimited IBISWorld access

Family office looking for traditional searchers

Examples of self-funded searcher websites

What are market terms for Seller Notes?

2 Best Ways To Find Motivated Sellers, Off-Market Deals

Sorry, but you are a broker's worst nightmare ... and how to fix it

Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.

We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.