Thoughts on fuel delivery service businesses?

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February 29, 2024

by a professional in Salt Lake City, UT, USA

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

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Reply by a searcher
from University of Richmond in Valparaiso, FL, USA
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
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Reply by a searcher
from Harvard University in Washington, DC, USA
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.
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