Introduction

Compton Geotechnical Associates Inc. (CGA) will provide innovative approaches to geological engineering services throughout the state of Maine.

CGA will target this narrow geographic area and leverage its collective reputation. This will allow CGA to enter the market with long-term, cost-effective contracts that focus on quality service. We believe we can better serve this niche market than larger firms. Additionally, we offer better services at a less expensive cost than competitors with the same size.

The Company

CGA is a Delaware limited liability partnership that will be registered for tax purposes. Its founder is Mr. Martin Compton, an ex-head of Wilson and Brown, Inc.’s engineering geology department. He has assembled a respected group of engineers, geologists, and graphic artists who have combined 35 years of industry experience.

The company is currently only investing with a few private investors. It does not intend to go public. The company is headquartered in Augusta Maine. There is a water and soil testing laboratory, conference rooms, and office spaces. The company expects to begin offering its services in January of Year 1.

The company&#8217’s principal clients will include major construction firms, local and state governments, and utility and water providers. By focusing on institutions such as these that have special needs, we believe we will be able to better serve our clients and produce a superior service that is more effective that other geo-engineering firms.

The Services

CGA offers comprehensive geo-engineering services to our diverse clients. Our services fall into two main categories of geotechnical engineering services and construction monitoring/laboratory testing.

These services include groundwater and surface evaluations, slope stability analysis and bluff studies. They also provide laboratory analysis of soils and rocks, groundwater, settlement analysis, load testing, load testing, and load testing. Every project is unique and tailored to the client.

Market

This market offers many opportunities due to recent federal and local regulations requiring potential customers geotechnical monitoring and study before construction.

Over the past 20 years, the geoengineering industry grew at a rapid rate. According to Journal of Hydrology & Geoengineering the industry has experienced an average growth rate of approximately 22% over the past five year. Geotechnical consulting businesses are made up of thousands of smaller organizations and individuals who work for a few well-known companies. These companies range from major international name-brand firms to tens of thousands of individuals.

Financial Considerations

You will need to start-up assets [see the Start-up Table]. This includes expenses as well as the cash required to support operations up until revenues become acceptable. Although most of the company’s liabilities are sourced from outside private investors or management investment, we have borrowed [see Start up Funding table] from Bank of America Commercial Investments. We expect to repay the principal in two years. Charter Bank of Augusta will repay a long-term loan of [see Start up Funding Table] within ten years.

The company expects profitability by year one. It does not anticipate any major cash flow problems. We conservatively believe that during the first three years, average profitability per month per segment will be about $8,000. We believe that approximately three projects per monthly will ensure a breakeven point.

1.1 Objectives

These are the three-year goals of Compton Geotechnical Associates (CGA).

• By year two, break-even is achieved.
• Set up long-term contracts for at least four clients
• To build long-term relationships and word-of mouth marketing, we must achieve a minimum 95% customer satisfaction rate.

1.2 Mission

CGA has the mission to develop innovative solutions to geological engineering and to maintain long-term relationships with clients by providing excellent services that are timely and economically feasible.

Success keys 1.3

The keys to CGA&#8217’s sustainability and long-term profitability are listed below: