How much does a Private Utility Locating cost to buy?

A typical Private Utility Locating sells for 2x to 3.5x seller's discretionary earnings. With estimated SDE of $105K, expect to pay roughly $210K to $368K before adjustments for assets, debt, growth, and local market quality.

How much does it cost to start a Private Utility Locating?

Startup costs range from $40K to $80K depending on location, equipment, and scale.

Service

Private Utility Locating

Q: What are the profit margins for a Private Utility Locating?

The average profit margin for a Private Utility Locating is around 30%. Main costs are technician labor, vehicles and fuel, general liability + E&O insurance, equipment depreciation/repairs, and routing/reporting software.

High-trust locates that prevent six-figure mistakes

Bottom line

Accessible entry point; validate local supply before buying.

Private utility locating companies mark and map underground utilities on the customer side of the meter (where 811 often stops), as well as on private sites where records are incomplete. Customers pay for accuracy because a utility strike can cost tens of thousands in repairs, downtime, and liability. Operators use EM locators, sondes, and optionally GPR to trace lines, mark them on-site, and produce simple maps/photos for crews and owners.

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Acquisition score

Strong

Avg Revenue

$350K

Profit Margin

30%

Acquisition Multiple

2x - 3.5x

Startup Cost

$40K - $80K

How It Works

Win work from excavators, GC's, utilities, HOAs, and property owners. Dispatch a locator to the site, scan/trace utilities, mark them (paint/flags), and deliver a brief report (photos, sketches, or a PDF). Revenue is usually billed by the hour with a minimum mobilization, or per locate/project. The business scales by adding technicians and standardizing reporting and QA.

Revenue Range

Low End

$150K

Typical

$350K

High End

$1.2M

Real Acquisitions in This Category

SBA 7(a) change-of-ownership loans · NAICS 541990 · All Other Professional, Scientific, and Technical Services

Deals tracked

292

119 in last 24 mo

Median loan

$633K

$251K–$1.6M p25/p75

Implied deal size

$744K

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

-8.1%

deal volume vs prior 12 mo

Median loan Δ

-5.1%

57 recent · 62 prior

Financing Profile

Median rate

9.50%

17% fixed · last 24 mo

Median term

120 mo

standard 10-yr

Collateralized

of loans secured

Median jobs

supported per deal

Top lenders in this space

Live Oak Banking Company51

The Huntington National Bank38

Old National Bank9

Zions Bank, A Division of6

Byline Bank6

Where deals happen

CA30

FL29

TX23

MN17

CO14

IN13

OH11

NC11

IL10

PA10

Franchise vs independent

Franchised acquisitions finance at $394K median vs $659K for independents — a -40% franchise discount. Franchises make up 11% of deals tracked.

Recent Comparable Deals

Closed	State	Loan	Implied deal	Jobs	Franchise
Mar 2026	IN	$844K	$992K	2	—
Mar 2026	CA	$524K	$617K	6	—
Mar 2026	FL	$2.4M	$2.8M	6	Trimmers Holiday Decor
Mar 2026	AZ	$714K	$840K	3	—
Feb 2026	FL	$150K	$177K	8	—
Feb 2026	FL	$1.3M	$1.5M	8	—
Jan 2026	UT	$154K	$181K	2	—
Jan 2026	UT	$15K	$18K	2	—
Jan 2026	FL	$580K	$682K	4	—
Jan 2026	CA	$980K	$1.2M	6	—

Volume rank #24/544Deal-size rank #310/544Momentum rank #204p90 loan: $2.8MData 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

+High perceived value (one accurate locate can save a client $50K+)
+B2B repeat customers with low churn (excavators and GC's)
+Low inventory, simple ops, and clear deliverables
+Scales cleanly by adding trained technicians

Cons

-Liability risk if locates are wrong (insurance is non-negotiable)
-Training and quality control matter, mistakes are expensive
-Equipment is specialized (EM/GPR) and needs calibration/maintenance

Best For

Detail-oriented operators comfortable with job sites, safety standards, and compliance-style work

Operating Costs

Main costs are technician labor, vehicles and fuel, general liability + E&O insurance, equipment depreciation/repairs, and routing/reporting software.

SBA Financing Estimator

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

+$611/mo

after debt service

Deal price — $740K

Range: $530K (2×) to $1.6M (3.5×+)

Down payment — 15% ($111K)

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

$111K

15% equity injection

Loan amount

$629K

85% SBA-financed

Monthly payment

$8K/mo

$348K total interest

Monthly profit

$9K/mo

at 30% margin

Monthly cash flow after debt service

+$611/mo

Down payment paid back in ~182 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.