Projecct Wildcat

The company specializes in customized chemical treatment solutions
for the oil and gas industry and water treatment sectors.
The company enjoys an envious business model with extremely high
margins, repeat business, third-party outsourced manufacturing, no
capex, and extremely low overhead. It distinguishes itself through its
proprietary products, acclaimed for their best-in-class performance,
particularly in scale control and corrosion inhibition.
The company has emerged as a trusted partner in navigating
challenges associated with scale control in industrial settings.
Focusing on delivering substantial cost savings, minimizing
downtime, and enhancing operational efficiency, the company serves
as a strategic ally for oilfield chemical service companies and energy
companies alike.

High Margin: Current EBITDA margin as a percentage of sales is 47.5%. Overhead is less than 3% of sales.
High Growth: Revenue and Margin more than doubled in 2022 vs 2021. And
2023 was approximately 70% higher than 2022. There has been overall
product growth in customer applications for Frac/Stimulation (scale inhibitor)
and corrosion inhibitor for production treating. Currently there are several “new
projects” in various stages of development.

Scalable: All products are blended at designated 3rd party “toll blending”
facilities on a made to order basis. All Raw Material inventory is maintained at
these locations. The company has no Capex and scaling only requires placing
more orders with the 3rd party blending facilities.

No risk assimilation and integration of the business: The business has an
extremely simple business model. The entire business is currently run by the
owner with bookkeeping assistance from his wife. There are no employees or
facilities to assume, and the acquiring company will only need to integrate the
customers and suppliers.

Proprietary products with best-in-class-performance: The company has
developed numerous unique and proprietary products that have achieved
“best in class” performance in oil and gas applications. The formulations use
several raw material components that are relatively unique to the company to
achieve properties, functionality, and performance that are unrivalled among
competitors. These applications include scale control (such as silica and
severe barium sulphate), squeeze treatments, iron sulphide control and
dissolution, and corrosion control.

Total Sales: $7,500,000

Cash Flow: $3,500,000

FFE: $1,500

Inventory: $3,600,000