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Business for Sale > Seismic equipment manufacturing & service business

Business Opportunity

Industry: Manufacturing and service


Sector: Oil & gas exploration


SIC Code: 13820000 OIL AND GAS EXPLORATION SERVICES


Transaction Type:
Business for Sale

Country of Origin: India |


Target Countries: India, United States


Target Areas: European Union, BRICS countries (emerging markets Brazil, Russia, India, China, South Africa), North America


Business Review

Major Government Oil Company in India uses 17 Scorpion systems within India and the original OEM does not have capability to continue support services. It will require continued service and parts for next 3-5 years minimum, as they have only entered into a tendering system for replacement of previously acquired seismic acquisition systems. The expectation is that these Scorpion systems will be replaced only after 3-5 years, however, they will continue to be used and slowly cannabilised internally to continue supporting its usage. An opportunity exists to purchase all the Scorpion inventory from the OEM, and to continue servicing Major Government Oil Companies in India and other global Scorpion system users

Products
For oil & gas exploration industry in India
Services
Servicing of seismic systems
Financial Information

Asking Price: 1,500,000 USD


Highlights

Tender already in final stages will exceed $1.5 million, and together with buy back of existing Scorpion system will increase this revenue potential to over $2 million. Buy Back has already been discussed and is in process of final negotiations however buy back will require little to no cash as only exclusive option is being offered to current US based user. Inventory from OEM will generate $1.5 million in revenue, with initial cost of $500,000 and subsequent payment of $500,000 after one year. Negotiations have already indicated that OEM would be happy to accept this however we will be trying to keep this initial down payment as low as possible.

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