Ref. No - BFS938252

LocationSouth Africa, Gauteng

Ref. No - BFS938252

Sector - Services

Asking Price
R9,780,000
Monthly Profit
R341,427
Asset Value
R 4,188,904
Stock Value
R 80,000
Yearly Net Profit
R 4,097,123

Summary

This well-known borehole drilling company provides turnkey solutions in borehole drilling, equipping, maintenance, water storage and filtration systems in Gauteng and surrounding provinces.

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Fully describe the business's activities?

This professional water infrastructure company provides turnkey solutions in borehole drilling, maintenance, borehole equipping, off-grid water systems, and water storage solutions. With an established track record and extensive technical experience, the company serves residential, agricultural, and commercial sectors in Gauteng and neighbouring provinces on request.

The company provides an all-inclusive, coordinated service offering, combining in-house technical capabilities with trusted outsourced specialist providers where required, including:
* Site Assessment, Surveys and Borehole Drilling: Arranging water surveys where required, and utilising advanced drill rigs capable of drilling in varied locations and ground conditions, with the placement of protective casings where required.
* Borehole Repairs & Maintenance: Comprehensive physical inspections, targeted pump diagnostics, flow optimisation, deep-well cleaning, borehole structure repairs, equipment fault finding, repairs, replacements, maintenance, and system troubleshooting.
* Complete Borehole Equipping: Installation of robust electrical and structural hardware configurations, including borehole pumps, electrical switchgear, related electrical work, plumbing, water tanks, and off-grid water-system components.
* Water Storage Solutions: Layout and installation of water storage tanks to deliver reliable water backup capabilities.
* Specialist Testing, Analysis and Filtration Services: Integration with recognised and SANAS-accredited water testing laboratories for comprehensive water quality testing where required. Filtration solutions and targeted water-treatment recommendations are arranged through experienced and registered filtration specialists, allowing for a complete turnkey solution even where certain specialist services are outsourced.

How long has the business been established?

Established in 2016, with approximately 10 years in operation. The business expanded into borehole drilling in 2019, supported by borehole-related technical experience dating back to 2003 through its associated electrical business.

How does the business operate on a daily basis?

The business operates from an administration office that receives leads, prepares quotations, liaises with customers, schedules work, and provides feedback on projects in progress.
The drilling teams prepare, clean, repair, and maintain equipment, travel to sites, and conduct normal borehole drilling, cleaning, and related drilling activities.
The electrical and technical team equips boreholes and installs the required pumps, electrical connections, plumbing, water tanks, and off-grid system components where applicable. The team also attends to electrical, pump, equipment, and borehole-system maintenance callouts.
Maintenance, repairs, replacements, fault finding, installations, and other related services are booked and executed on a daily basis. Where specialist outsourced services are required, such as water surveys, yield testing, water quality testing, or filtration, these are coordinated through trusted external contractors as part of the company’s turnkey service offering.

How are the clients attracted to the business?

Clients are attracted to the business through word-of-mouth recommendations from previous customers, repeat business, referrals, online enquiries, and marketing campaigns. The company’s established reputation, practical industry experience, and ability to offer a coordinated turnkey borehole and water-system solution also contribute to lead generation and customer confidence.

What Advertising/Marketing is carried out?

Extensive social media and online marketing
SEO on webpages
Targeted advertising where appropriate

What competition exists?

There are competitors, but not many offering the wide range of services as a one-stop solution

How could the profitability of the business be improved?

Profitability could be improved by extending the range of services offered, i.e. exploration drilling.
Additional profitability could be increased by insourcing selected services currently outsourced, i.e. borehole yield testing and filtration installations.
The business could also improve profitability by adding an additional compressor-fitted truck and team members to form an additional drilling team, as the business already has two drilling rigs.
Further growth could be achieved through more aggressive marketing of electrical services beyond borehole equipping.

Give a breakdown of staff/ functions/ length of service?

2 x Sales and administration
1 x Supervisor & truck driver
2 x Drill operators
1 x Driver & general worker
1 x General worker
1 x Installer/Technician/Electrician

Do any have management potential?

Yes. There is management potential within the administration team, as well as with one member of the drilling team.

How involved is the Owner in running the business?

The owners, a husband-and-wife team, are relatively hands-on in overseeing financial transactions, operational quality, equipment standards, and customer satisfaction. However, the daily operations of the business can run independently from the owners through the administration, drilling, and technical teams.

When does the current lease end?

The Administration and Sales office lease is due to renew in July 2026.
Lease terms for workshops/storage facility and staff quarters can be negotiated with the owners.
An allocation is made to include expenses in the profit analysis for fair rental of the workshops/storage facility.

What are the trading hours?

Office hours are Monday to Friday, 08:00 to 16:00.
After-hours, weekend, and public holiday work may be arranged in advance on special request, subject to pre-arranged after-hour rates.

What lease deposit and/or other surety is required?

For the administration and sales office, no new lease deposit is expected to be required, provided the lease continues in the business name and the purchaser remains in the same office.
The workshop, storage facility, and staff quarters form part of the current owners’ private property. If the purchaser wishes to continue using these facilities, rental terms, deposit requirements, and any other surety can be negotiated separately with the owners.

Describe the premises from which the business operates?

The business rents an office in Pretoria, from which the sales and administrative staff operate.
The equipment is stored, repaired, and maintained at the owners’ smallholding just outside the city. The workshop/storage facilities are also located there, and the drilling team resides on the property.
The owners’ smallholding is also for sale and includes extensive infrastructure and a main residence. Further details can be shared with prospective buyers where relevant.

What are the main assets of the business?

Truck with mounted drill rig
Trailer mounted drill rig
Truck with mounted air compressor
Pick-up Bakkie
4x4 Bakkie
Flat deck trailer
Drill rods
Hammers
Other equipment & tools
Office Furniture & equipment

Which assets are on lease/HP and with whom?

One truck and one pick-up bakkie are currently financed through instalment sale agreements with WesBank.

Will Seller settle or Buyer to take over?

As this is a shares sale, the instalment sale agreements will remain in the company and will continue to be paid by the company after transfer. No settlement by the Seller is currently intended.

Strengths?

Established and well-known brand
Long track record supported by experienced staff
Professional and customer-focused business approach
Known for reliability and practical service delivery
Advanced and specialised drilling equipment
Tailored solutions and turnkey service offering
Affordable and cost-effective billing structure

Weaknesses?

Some reliance on the owners for higher-level technical assessments and cost-sensitive operational decisions.

Opportunities?

Extend the range of services offered, i.e. exploration drilling.
Expand electrical services beyond borehole installations, with the business already serving a major banking group and potential to grow this service area further.
Implement teams to insource selected services currently outsourced, i.e. borehole yield testing and filtration installations.
Aggressively market to homeowners around the benefits of sustainable water sources and independent water supply.

Threats?

Changes in regulations and municipal by-laws.

What is the reason for the sale?

The owners wish to emigrate and are looking to transition into a new lifestyle phase. With retirement planning and family relocation considerations in mind, they feel it is the right time to sell the business.

Why is this a good business?

This is an excellent opportunity to acquire an established business that is well-known in the borehole drilling and water infrastructure industry.
The business offers strong growth potential as more homeowners, businesses, farms, and institutions seek greater water independence due to rising water costs, unreliable municipal supply, drought cycles, and the growing need for backup water solutions.
With climate-related water concerns, including predicted El Niño conditions, creating further awareness around water security, the business is well positioned to continue serving demand for borehole drilling, pump installations, maintenance, repairs, water storage, and related water-system services.
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Dirk

Dirk Uys

LocationSouth Africa, Gauteng

Preferred method of contact

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