Water Well Drilling
One truck, one crew, and $8M/year — the quietest gold mine in home services
Bottom line
Worth studying, but do not buy without strong local proof.
Water well drilling companies drill new wells for residential homes (typically $5,000-$20,000 per job), service and maintain existing wells, and install pump systems. It's an asset-heavy, skill-intensive business where a single drilling rig generates $1M+ annually. The barrier to entry is high (equipment, licensing, expertise), which creates a deeply defensible moat. Rural America runs on private wells — there are 43 million well-water users in the US — and that demand never stops. A well-run operation with 2-3 rigs routinely generates $3-8M in revenue at 20-30% EBITDA margins.
Avg Revenue
$1.5M
Profit Margin
25%
Acquisition Multiple
2.5x - 4x
Startup Cost
$300K - $1.0M
How It Works
A drilling rig (the main asset, $200,000-$500,000) is operated by a crew of 2-3 people. New well installations are the highest-revenue jobs ($8,000-$20,000 each). Service work — pump replacements, water testing, pressure tank swaps — creates recurring revenue. Most markets are underserved; established players often have 6-12 month backlogs in rural areas.
Revenue Range
BizBite underwriting snapshot
Pass for now
Water Well Drilling 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.
Category-level fit before lender-specific diligence.
Weak source data caps the final score.
Why it may work
- +SBA dataset shows 13 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 237110 · Water and Sewer Line and Related Structures Construction
Deal Size Distribution
Deal Flow Over Time
Financing Profile
Recent Comparable Deals
| Closed | State | Loan | Implied deal |
|---|---|---|---|
| Jan 2026 | CO | $2.1M | $2.5M |
| Sep 2025 | IN | $890K | $1.0M |
| Aug 2025 | TX | $1.5M | $1.7M |
| Jul 2025 | MT | $1.8M | $2.1M |
| May 2025 | TX | $4.1M | $4.8M |
| Jan 2025 | OR | $1.7M | $2.0M |
| Dec 2024 | FL | $3.7M | $4.4M |
| Nov 2024 | NM | $952K | $1.1M |
| Jul 2024 | SC | $270K | $318K |
| Jun 2024 | FL | $300K | $353K |
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
- +Massive moat: licensing, equipment, and expertise keep competition out
- +Chronic undersupply in rural markets — backlogs are common
- +Service revenue creates recurring income from existing wells
- +Single-rig operation can gross $800K-$1.2M annually
Cons
- -Heavy upfront capital for drilling equipment
- -Licensing and regulations vary widely by state
- -Finding skilled drillers is notoriously difficult
- -Weather-dependent — frozen ground halts operations in winter
Best For
Operators or investors in rural markets willing to learn a specialized trade with enormous upside
Operating Costs
Biggest costs: crew wages (drillers command $60-$90K/year), fuel, rig maintenance, insurance, and licensing. Fuel is a significant variable cost on each job.
SBA Financing Estimator
Adjust the deal — see if it cash flows after debt service
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.
Where to Buy
Well drilling and water service businesses listed for acquisition
In-depth breakdown of how well drilling companies generate $8M+ in revenue
Acquisition Score
Scores margin (30), entry multiple (25), SBA market depth (20), category risk (15), and deal momentum (10). Higher = better acquisition candidate.
Quick Facts
- Category
- service
- Difficulty
- 4/5
- Buy price
- $3.8M–$6.0M
Buyer's Toolkit
Essential tools to get started
Some links may be affiliate links. We only recommend tools we'd use ourselves.
Ready to Buy? Start Here →
Largest business-for-sale marketplace in the US
SBA loans and business acquisition financing — get funded fast
ROBS financing — use retirement funds to buy a business tax-free
Bookkeeping for small business owners — hands-off financials
Some links may be affiliate links. We only recommend tools we'd use ourselves.
Get the full breakdown in your inbox
Weekly boring business breakdowns
One boring business. Real numbers. Every week. Free.