STRUCTURING A PARTNERSHIP
In each of our Build, Own, Operate business models, a joint venture is the preferred structure, whereby the local investor or partner holds a majority stake while Quest Water retains a minority interest. For Quest Water's minority ownership in the partnership, we will provide certain assurances that the undertaking will be successful by ensuring the integrity of the produced water, training facility operators, provide ongoing service maintenance, and training of technicians. With Quest having a vested interest, it is to both party’s benefit as we will ultimately ensure the business is successful and profitable. The investor or partner has the option to continue their partnership with Quest in perpetuity through the Build, Own, Operate (BOO) model, or to dissolve the partnership in 3 – 5 years through the Build, Own, Operate, Transfer (BOOT) business model. The decision is at the discretion of the partner.
As Quest will have a vested interest in the business, our plan is to sell the applicable technology and products to our partners at the lowest possible cost. We can also offer equipment financing through one of the numerous public and private entities in Canada and the United States. The partner must have the financial means to invest sufficient capital to operate the business for a minimum of one year. With most of our business models, the initial investment costs will be recouped within 12 months from operational revenue while the business becomes cash flow positive and extremely profitable in less than three years, and in most cases, within the first 18 months.