Over the years many people in the industry have shared funny stories with me that often made an impact on the way I have thought about business.  I would like to share one of those stories with you.  I know I will be dating myself as this story goes back to when drivers and technicians used two-way radios and when anyone over the age of 12 knew what a booby prize was.  Ask someone under 35 today what a booby prize is and see what response you get.  If you don’t know, ask an older person.

Before texting, or the use of electronic dispatching, or before Nextel touch and talk radios, or even before cell phones, there were two-way radios.  The proper language on two-way radios was to use the “10 code.”  Some common examples are 10-4 = Message received, 10-6 = Busy, please stand by, and what’s your 20, which is 10-20 = My location is _____.  Just watch a Smokey and the Bandit movie for a refresher course.

Getting back to the story—there was a home heating oil customer who called their fuel company to let them know they had no heat.  They said they thought they were out of fuel.  The CSR informed them that they were on automatic delivery and they had received a delivery in September and since it was the middle of October it was unlikely they were out of oil.  The customer had a service agreement in place so the company dispatched a service technician.  When the technician arrived, they found the above ground 275-gallon tank was empty.  He put ten gallons of fuel in the tank, primed and started the burner and called for a driver to fill the tank.

Two weeks later, the customer called in with no heat.  Another service technician was sent out and found that the tank was empty.  Service dispatch was concerned that there may have been an oil spill as the oil line from the tank to the burner was underground.  The service technician tested the line and did not find a leak but he ran a temporary line just to be sure and to make certain the customer would have heat.  The homeowner was informed and they were very grateful for the thoroughness and diligence of their supplier.  Their heat was back on and it was a good thing as it was now November and it was getting cold.

Two weeks later the customer called and said they had no heat.  They said they checked the new gauge that was installed on the tank and it showed that the tank was empty.

This raised alarms for the fuel company and all sorts of theories were discussed such as someone stealing the fuel.  The action that they took was to send a service supervisor.  When he pulled up in the street in front of the house, he said I am 10-20 at the customer’s location and they are out of oil, please send a truck.  The dispatcher asked if he had looked at the tank and the burner and if he had diagnosed the problem.  He said that he had not gotten out of his van but he was fairly certain they were out of oil.  The dispatcher asked him how he knew they were empty and he said it was simple, there is no roof on the house.

I’m sure there are many lessons to be learned and hopefully you can use this story to help train your employees as to what questions to ask a customer and how to be observant at a customer’s home.  If you have any questions just 10-25 me but don’t 10-26 me.  I wish you all a 10-99. (You can Google it at https://www.commusa.com/walkie-talkie-10-codes).

Steve Abbate

Managing Director, Cetane Associates

February 2023

First published in Fuel Oil News, February 2023 issue

NEW MILFORD, Conn. – May 16, 2023 – Cetane Associates is pleased to announce that Trey Brasseaux has joined its financial advisory firm as an Associate, effective May 15, 2023. Trey brings more than six years of client advisory experience in financial roles with professional services businesses. His background includes working with an independent investment bank and a leading advisory firm focused on the energy industry.

Prior to joining Cetane Associates, Trey Brasseaux most recently worked as an Associate at J Wolf and Company, an independent investment bank centered on raising capital for acquisitions in the lower middle market. His role supported the engagements through financial modeling and analysis, as well as collaborating with clients. For the five years before his tenure at J Wolf, Trey worked in Houston at Opportune LLP, a consulting firm specializing in the energy industry. Trey worked across the finance/accounting service lines as part of the corporate finance team and was steadily promoted from Consultant to Senior Consultant and then to Manager. His experience includes engagements in Opportune’s investment banking, valuation, restructuring, due diligence, and complex financial reporting practices. His clients included both private and public energy companies in upstream, midstream, downstream, and minerals.

Trey holds Bachelors degrees in Business Honors and Finance and a Master of Financial Management degree from Texas A&M University. Additionally, he holds FINRA Series 79 and 63 licenses (registered with Financial Industry Regulatory Authority). A native Houstonian, Trey and his wife live in Houston where he supports the Aggies and other local sports teams and enjoys golf, exercise, and landscaping.

Barrett Conway, Managing Director and Principal of Cetane commented “Bringing Trey onboard is great for our team, our clients, and our process. His extensive education, training, and experience are perfect fits for the financial advisory, acquisitions, and M&A services we provide our clients across the country. In addition to his strong financial skills, he lends his friendly, winning communication style to our team.”

NEW MILFORD, Conn. – April 28, 2023 – Cetane Associates (“Cetane”) is pleased to announce that Reit Fuel Oil Co. (“Reit Energy”) a Pennsylvania corporation located in Warminster, Pa. has acquired assets related to the delivered fuels, HVAC, and plumbing business of Walter A. Dwyer, Inc. (“Dwyer”), of Ambler, Pa. The transaction closed on April 25, 2023. 

With beginnings dating back to 1875, merely ten years after the U.S. Civil War, Dwyer has a lengthy history that includes selling building materials, coal, oil, heating services, boilers, and plumbing. Its founder, Edward Dwyer, was born in 1826. Over the years, members of the Dwyer family have continued to expand the company through diversification and acquisition, creating a well-recognized brand beyond its origins in the Chestnut Hill neighborhood of Philadelphia. Today the sole survivor in a long line of Dwyer family owners is John L. Dwyer, Jr., president and principal. John commented, “Our Dwyer team has provided outstanding service to our residential and light commercial customers in Northwest Philadelphia and Montgomery County for decades. We’re pleased to make this significant transition and know that Reit Energy will carry on a tradition of excellence.” John added, “We’re especially grateful to the team at Cetane for their guidance and expertise to take us smoothly across the finish line.” 

As one of the largest full-service home comfort companies in the Delaware Valley, Reit Energy sets itself apart by providing its customers the best value along with courteous and professional service. With an experienced team of technicians and the latest equipment, Reit Energy has served its community since 1945. Reit Energy’s president, Kurt Haab said, “We’re excited to welcome the Dwyer team and their customers to Reit Energy. The fit between our companies is great as we both genuinely care about our customers and keep our promise to serve them personally and professionally.” 

Doug Woosnam, Director at Cetane Associates, stated, “It was a pleasure to work with John through this successful transaction with the Reit Energy group. I congratulate both parties on achieving this outstanding result.”  

Cetane served as the sole arranger to Dwyer. Cetane advised on the sale, including an initial valuation opinion, marketing the business through a confidential process, assisting in negotiating the final deal terms, and coordinating the due diligence process. Team members Doug Woosnam, Fred Lord, and Dalton Brooks managed the transaction. 

NEW MILFORD, Conn. – April 18, 2023 – Cetane Associates is pleased to announce that Ford DuBose and Dalton Brooks have joined its financial advisory firm as Associates, effective April 1 and April 11, respectively. DuBose brings a specialization in appraisals to his role while Brooks contributes a legal background to his position. They both provide analytical support to Cetane’s M&A deal execution team.

Prior to joining Cetane, Ford DuBose was a certified general real estate appraiser with more than six years of experience in the valuation industry. Most recently, he was a senior valuation specialist at Colliers International (Dallas office), where he specialized in appraising multitenant retail centers. He has also appraised a variety of asset types, including office and industrial buildings, land, special purpose properties, subdivision, and recreational facilities. During his tenure at Colliers, Ford was involved with the north Texas chapter of the Appraisal Institute.

Ford holds a bachelor’s degree in finance and a master’s degree in real estate from Texas A&M University. A native Texan who enjoys landscaping, hunting, and fishing, Ford is married and lives in a Dallas suburb.

Before Dalton Brooks joined the Cetane team, he was a project manager at Southwest General Contractors in Amarillo, Texas, doing large scale commercial construction. He holds a bachelor of science degree from Texas A&M University (2014) and a law degree from Texas Tech University (2017).

Also a native Texan, Dalton was born, raised, and still lives in Amarillo. Married and father of a son, Dalton is a runner, golfer, hockey player, fly fisher, and occasionally remodels houses.

Barrett Conway, Managing Director and Principal of Cetane commented “It’s exciting to welcome Ford and Dalton to the Cetane team. Each of them brings valuable experience to assist our clients through their transactions. Their addition to our team strengthens our client support as we expand our reach in home services industries across the country. They will enhance Cetane’s value to our clients.”

NEW MILFORD, Conn. – April 4, 2023 – Cetane Associates is pleased to announce that Bob Williamson has joined its financial advisory firm as Director, effective April 1, 2023. Bob Williamson has spent the last thirty-plus years managing home services that include retail propane/delivered fuels, HVAC, plumbing, home security, swimming pool, lawn and tree care, and pest control industries. Much of his career has involved engagement in acquisitions, business consulting, and transition planning. Bob is a regular speaker at industry conferences and has served in leadership roles for industry associations.

Bob has worked with Moyer, a large Mid-Atlantic, residential service provider, for more than three decades. His role as General Manager of the company covered more than 25,000 customers and 250 employees. His breadth of experience and expertise developed as he traveled to visit many diverse service companies across the country looking for and sharing ideas that could help his company grow and prosper. Through this period, he handled over 40 pest control acquisitions. His skills bring value to Cetane clients who are seeking an experienced, professional advisor.

Currently, Bob serves on the Pennsylvania Pesticide Advisory Board, is Past President of the Lawn Care Association of Pennsylvania, and also is Past President of the Warrington PA Rotary Club. He holds a Bachelor of Science in Agronomy from Penn State University and an MBA from LaSalle University.

Barrett Conway, Managing Director and Principal of Cetane commented “We are thrilled and fortunate to have Bob join our team. His interest in business excellence combined with his hands-on experience will add to Cetane’s strength as we expand our reach in home services industries. Strategically, Bob’s wealth of experience in the pest control M&A arena creates the ideal entry for Cetane into the pest management space. His credentials as a leader in pest control combined with his ability to connect with business owners—helping them achieve their goals—will enhance our value to our clients.”