Irrigation system maintenance portfolio — large number of contracts available, strong recurring revenue

Company history/background

The company has been in existence for over thirty years and has focused entirely on irrigation systems from the very beginning. During that period, an extensive portfolio of maintenance contracts has been built up with private and business clients spread across a large part of the Netherlands. This growth was achieved almost entirely through word-of-mouth and referrals; there has never been any structured advertising. The client relationships are distinctly long-term: clients remain with the maintenance team for an average of more than ten years, and many relationships have continued since the installation of their system. As a result, revenue is recurring annually and highly predictable. The owner is seeking a buyer for the portfolio who will continue the client base and service level with the same care.

Company activities

The core activity is the maintenance and service of irrigation systems based on annual maintenance contracts. The work follows a fixed seasonal pattern:

• Spring: commissioning, flushing, adjusting and checking the installation
• Summer: breakdown service, repairs and replacement of parts (nozzles, valves, pumps, controls)
• Autumn: winterizing and blowing out the systems

The company operates independently of brands, with direct lines of communication to regular suppliers.

Unique selling points

• Large volume of ongoing maintenance contracts: recurring, highly predictable revenue with high retention — customers stay for more than ten years on average — and very low accounts receivable risk.
• National distribution, clustered in regions. The portfolio can be acquired in its entirety, but also in parts: by region or cluster, potentially by multiple buyers simultaneously.
• Niche market with few specialized providers; the combination of hydraulic, electrical, and control knowledge constitutes a real barrier to entry.
• Contracts are subject to annual indexation and the client base has proven to be price-stable.
• Low overhead; immediately compatible with a party that already has technicians in the field.

Other

Intended buyer: a party capable of managing the contracts with its own field service team — for example, a landscaping or green maintenance company, an installation or technical service company, a supplier in the irrigation industry, or an entrepreneur with a buy-and-build strategy in technical services. Because the service area covers a large part of the Netherlands, the acquisition of a regional portion of the portfolio is explicitly open for discussion; talks with multiple buyers simultaneously are also possible. Expertise is transferable. If desired, the selling company remains involved for a full season and can, if requested, oversee planning, routes, customer introductions, toolbox meetings, and the training of technicians.

Structure: provided for as an asset transaction (Art. 37d VAT Act). Further information after initial contact and signing of a confidentiality agreement;