30% Profit Margin Pipe Inspection Company in Denver 

2025’s revenues were 912K with 273K in earnings.  That is a 30% profit margin, which is very high for a service company.  The sales price is 740K, which is 2.7 times the 2025 earnings.  They also started 2026 trending above 2025.   The owner has run this company with steady revenues and earnings. With virtually no advertising, the business comes from referrals from happy customers. The customers are realtors, contractors, real estate inspectors, municipalities, engineers, and state and federal governments. The company does not need to pay referral fees because their high-quality work doesn’t embarrass the people/companies who refer them.  They are fast to respond and less likely to delay closing and work because they are unbiased inspectors.

They do commercial, government, and mostly residential work, which is 70% pipeline inspections.  They also do utility locating, odor/leak detection, pressure testing, and root removal. They use a portable unit to treat buildings and residences, and for city main lines, they use a specialized truck. Their work comes from a need that they perform in an unbiased way.  Sewer inspections are not typically performed by the inspectors that realtors recommend as part of the due diligence of all real estate transactions.  The inspectors typically recommend specialists like this company.

The company has great long-term employees and a functional building with room for growth.  They have 95% recurring customer base and spend less than 2% of their revenues on marketing. One third of the sales price is in the current value of the assets, and there are many ways to grow this company.  Traditionally, the biggest risk for a new buyer is loss of revenues post-closing, which is not a risk with this company based on the company’s strong reputation and 95% recurring revenues.  This should not change post-closing because the buyer will keep using their name as a dba, will be using the same equipment by the same employees, and because the owner does very little of the work himself.

This is not a franchise which means that the new owner will not have to worry about transfer fees, royalties, or any other obligations. He is selling because he is retirement age and retiring.  He enjoys the work, but he wants to spend more time with his family.

The company operates with a highly experienced team of technicians who are full-time employees along with 2 other support employees. The owner works 40 hours a week and spends 96% of his time in the office, and the rest doing the bigger estimates on site and some large job site visits.  He can do most of the estimating from his office and typically doesn’t need to visit most jobs.

The owner is not a marketing person.  He has not put money into the website for many years, SEO, social media, etc.  He does not pay any attention to Google, Yelp, or other ratings.  The new owner should ask for happy customers, real estate agents, and inspectors to submit reviews to bring up the Google rating, which should be easy to do, and then work on optimization.  This is an easy fix and should drive more business to the new owner.

They are a full-service, fully insured, professional company that can be trusted because they don’t provide any repairs, eliminating the temptation to exaggerate issues and recommend unnecessary repairs.  This is one of the reasons that they get so many referrals.  Obviously, realtors, inspectors, buyers, and sellers don’t want expensive delays in home or business property closings.  The company's lack of bias to find or manufacture problems keeps the referrals coming.  This has nothing to do with the owner; it is about the trustworthiness and fast availability of their techs.

The buyer will get approximately 250K in current value assets made up of 10 vehicles worth close to 100K, 142K in equipment, which is mostly cameras, generators, and other supporting equipment, and hundreds of small tools, small equipment, office supplies, and furniture.  This is all included in the sales price.  There is also a small amount of inventory that the new owner will get.

Growth and Expansion:    There are a lot of ways to grow this company.  The new owner can improve their online marketing while paying attention to their star ratings by starting to ask for reviews.  There is a demand for their services all over the state.  The company works in the Denver metro area but knows that there are a lot of populated areas that are underserved, especially by a non-biased inspector.  The company would be more profitable advertising to other populated underserved markets and hiring 1099’d independent technicians in or near Loveland, Summit County, Colorado Springs, Glenwood Springs, etc who would be provided uniforms, a small wrapped van, pipe inspection equipment, be able to work out of their home, and be fed jobs by a sales person(s) who would be advertising in these markets and calling on realtors, inspectors, and contractors for referrals.   All of whom will benefit from their work since they are a non-biased inspector.  The Seller also has a file on ideas for expansion which I have put into the data room in the blue link above.  His ideas include:  Soliciting municipalities to have periodic inspections and vacuum testing of city manholes, sewers, and street drains, which they already do on a small basis, find sprinkler system leaks, swimming pool leaks, and under-slab drain leaks.  Chimney inspections, hydrostatic testing of fire line pipes, sewer lines, storm lines, and under-slab drain lines.  Add air duct inspections, water testing, and mold testing.  All of which they already have equipment and vehicles.  There are also more technically advanced systems that provide each employee with an iPad that helps with bidding, tracking, and even accepting real-time payments.  The point here is that there are many ways to grow this business, and the building has plenty of room to grow into if additional techs or equipment is needed.

Location: Greater Denver Metro Area

The sales price is 740K, which includes all assets debt-free.  The seller will be keeping their cash and accounts receivable and will pay off all debt, including the accounts payables so that the business transfers debt-free.  This is an LLC filing as an S Corp dba, which means that the sale will most likely be an “asset sale”.  The sale of the business will also be contingent on the purchase of the building that he also owns.  He wants to sell both and fully retire.