Three Waters plan opens opportunity for drilling firm
Are you looking to take over a great Waikato family business that has plenty of room for growth?
Matamata Directional Drilling is a proud familyowned business with high quality and long-standing staff that started from humble beginnings.
With an excellent management team already in place, here is an opportunity for a new owner to work “on” rather than “in” a great Kiwi business, say ABC Business Sales’ Greg Dunn and Geoff Pridham, who are bringing the opportunity to the market.
With billions of dollars set to be spent over the next 30 years on New Zealand’s ageing water infrastructure, Matamata Directional Drilling is set to be a significant part of that work. Matamata Directional Drilling is a must-have for the “three waters” plan (sewage, drinking and stormwater) as the country cannot commit to such a programme without a directional drilling capability.
Based in the Central North Island, Matamata Directional Drilling has an outstanding reputation in the industry, providing an excellent service with immaculate plant and machinery. The company is a leader in directional drilling with long-standing relationships with key customers.
With a track record of increasing sales and profitability, the company has an average EBITDA of more than $1.5 million.
Matamata Direction Drilling offers services such as water, ultrafast broadband and telecommunications, power, effluent and irrigation drilling, and thrusting.
“With the three types of water, plus power infrastructure upgrades and new installs required by many district councils and government departments, there is high future growth potential in this industry for years to come,” says Pridham. “All the hard work has been done as long-term staff and management is already in place. The owners have done well over the last five years extracting themselves out of the business.”
Relatively high barriers to entry, limited competitors in the mid to high-end market, a solid base of repeat clientele plus one-off jobs, and a whole lot of future work make this an excellent business investment with the added opportunity for growth.
There is the opportunity to work more out of the Waikato-Bay of Plenty regions and more into the Auckland-Central districts and increase the scale of the business.
A new owner could continue with small-scale acquisitions to acquire higher volumes of contractual revenue and vertical integration.
With owners retiring from the industry proud of what they have achieved over the past 24 years, Matamata Directional Drilling is well placed to continue its current growth strategy.