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Equipment Testing Lab w/ Transferable Customer Contracts
  • Asking Price: $1,649,000

  • Revenue: $1,031,880

  • Cash Flow: $540,222

  • Equipment: $290,000

  • Inventory: $80,000 *not included in price

  • Real Estate: Owned

  • Employees: 4

  • Location: Southeast USA

Equipment Testing Lab.jpg

This company, based in the Mid-South, which has been in business for over 25 years, is a leader in testing the regulatory standards of industry-specific products. From 2017 to 2020, they have averaged $1,173,683 in revenue with an average of $523,432 in seller discretionary earnings (SDE), or 45% of revenue. In 2020, revenue was $1,031,880 and SDE was $540,222.

This company is the premier laboratory within their space as seen by their contracts with multiple regulating bodies. In 2020, 26% of revenue came from these testing contracts which would be transferable to the buyer. These contracts also designate the company as the vendor for specific equipment and parts needed by other testing facilities, manufacturers, and Universities. These product sales have historically averaged an additional 23% of revenue.

The average customer of this company is required to test products monthly or quarterly with only a few other options of test laboratories. The customers tend to choose this company over competitors due to their reputation as the leading experts and their faster than industry-standard turnaround time.

The company also has employees with long tenures that will stay on post-transition. The employees are very self-sufficient and capable of almost everything the owners do.

The owners are involved full-time in the business. An additional expense of $70,000/year is included in the calculated cash flow for a consulting agreement with the current ownership to ensure a successful transition. Both owners are flexible and accommodating on the transition timeline.

The ideal buyer profile for this company is someone with a science/engineering/laboratory background.

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