How much does a Hydrovac Excavation cost to buy?

A typical Hydrovac Excavation sells for 2.5x to 4x seller's discretionary earnings. With estimated SDE of $196K, expect to pay roughly $490K to $784K before adjustments for assets, debt, growth, and local market quality.

How much does it cost to start a Hydrovac Excavation?

Startup costs range from $300K to $800K depending on location, equipment, and scale.

Service

Hydrovac Excavation

Q: What are the profit margins for a Hydrovac Excavation?

The average profit margin for a Hydrovac Excavation is around 28%. Operating costs run $100K–$200K per truck per year: fuel, maintenance, insurance, CDL driver wages, and disposal fees for excavated material.

The $500K-a-truck business that digs up America's buried infrastructure

Bottom line

Worth studying, but do not buy without strong local proof.

Hydrovac excavation uses pressurized water and a vacuum system to safely expose underground utilities without risk of hitting gas lines, fiber, or electrical conduits. Every construction project near utilities is legally required to use safe digging methods — and hydrovac is the gold standard. A well-run truck generates $300K–$500K/year, and a 3-truck operation can generate $1M+ with one operator-manager. The global market is growing at 5%+ CAGR as infrastructure spending accelerates.

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Acquisition score

Strong

Avg Revenue

$700K

Profit Margin

28%

Acquisition Multiple

2.5x - 4x

Startup Cost

$300K - $800K

How It Works

Contractors, utilities, and municipalities hire hydrovac companies to expose underground lines before digging. Jobs are charged by the hour ($250–$500/hr) or by the project. Trucks can run 2,000+ billable hours per year in active markets. Government infrastructure contracts provide recurring, predictable revenue.

Revenue Range

Low End

$300K

Typical

$700K

High End

$1.5M

BizBite underwriting snapshot

Pass for now

Hydrovac Excavation has enough high-level data for a first look, but BizBite has not assigned a category-specific operating model yet. Treat the score as preliminary.

Speculative / 100

Data confidence

medium

52/100

Financing fit

medium

Category-level fit before lender-specific diligence.

Confidence cap

Weak source data caps the final score.

Why it may work

+SBA dataset shows 46 recent comparable loans

Be careful

!Source link status has not been verified yet
!No last-checked date yet
!No category operating model yet
!No category model yet

Real Acquisitions in This Category

SBA 7(a) change-of-ownership loans · NAICS 238910 · Site Preparation Contractors

Deals tracked

114

46 in last 24 mo

Median loan

$908K

$350K–$1.9M p25/p75

Implied deal size

$1.1M

median · ~85% LTV

Charge-off rate

—

not enough resolved loans

Deal Size Distribution

<$150K

$150K–500K

$500K–1M

$1M–2M

>$2M

Deal Flow Over Time

12-month momentum

-16.0%

deal volume vs prior 12 mo

Median loan Δ

+80.9%

21 recent · 25 prior

Financing Profile

Median rate

9.50%

9% fixed · last 24 mo

Median term

120 mo

standard 10-yr

Collateralized

of loans secured

Median jobs

11.5

supported per deal

Top lenders in this space

Live Oak Banking Company13

The Huntington National Bank6

Old National Bank5

T Bank, National Association4

Columbia Bank4

Where deals happen

CO10

MA9

NY8

MO7

NJ7

FL6

WA6

TX5

OH5

ID5

Recent Comparable Deals

Closed	State	Loan	Implied deal	Jobs	Franchise
Mar 2026	FL	$734K	$864K	12	—
Feb 2026	CO	$2.7M	$3.1M	2	—
Feb 2026	SC	$5.0M	$5.9M	35	—
Dec 2025	WA	$1.6M	$1.9M	11	—
Dec 2025	NJ	$1.1M	$1.2M	—	—
Dec 2025	WI	$1.4M	$1.6M	13	—
Nov 2025	NY	$400K	$471K	22	—
Nov 2025	NY	$3.1M	$3.7M	22	—
Sep 2025	IN	$600K	$706K	28	—
Sep 2025	AR	$150K	$177K	12	—

Volume rank #63/544Deal-size rank #184/544Momentum rank #228p90 loan: $3.2MData as of Mar 2026

Source: SBA 7(a) FOIA dataset, filtered to acquisitions (loans where business age is "Change of Ownership"). Implied deal size assumes an 85% loan-to-purchase ratio, a common SBA change-of-ownership structure. Charge-off rate shown only when 10+ loans have resolved (paid in full or charged off). Interest rates reflect last 24 months only. Actual deal values vary with equity injections, seller financing, and working capital terms.

Pros

+Mandatory compliance work — contractors cannot legally skip it
+Infrastructure spending tailwind drives long-term demand
+High hourly rates with government and utility contracts
+Competitive barrier: equipment cost keeps casual entrants out

Cons

-Truck cost of $400K–$700K new creates capital requirement
-Maintenance-intensive equipment with high downtime risk
-Requires CDL drivers and specialized operator training

Best For

Operators with civil construction experience or existing relationships with utilities and contractors

Operating Costs

Operating costs run $100K–$200K per truck per year: fuel, maintenance, insurance, CDL driver wages, and disposal fees for excavated material.

SBA Financing Estimator

Adjust the deal — see if it cash flows after debt service

+$935/mo

after debt service

Deal price — $1.4M

Range: $1.4M (2.5×) to $3.5M (4×+)

Down payment — 15% ($210K)

SBA minimum equity injection is 10% for change-of-ownership

Interest rate — 9.50%

SBA median for this category: 9.5%

Loan term — 10 years (120 mo)

SBA median for this category: 120 months

Down payment

$210K

15% equity injection

Loan amount

$1.2M

85% SBA-financed

Monthly payment

$15K/mo

$658K total interest

Monthly profit

$16K/mo

at 28% margin

Monthly cash flow after debt service

+$935/mo

Down payment paid back in ~225 months — long horizon

Estimates only. Excludes owner compensation, capex, working capital draws, and taxes. Margin assumes average occupancy and volume. Actual SBA terms vary by lender and borrower profile.