Tech–2495: Well-Established, Very Profitable Structural Testing Laboratory in California

Consistently Profitable – Stable Revenues – High Growth Opportunity

testing machineFor over 30 years, this structural testing lab has been providing exceptional and trustworthy services. Its revenues and EBITDA have been consistent for the past several years, with revenue of over $1.1 M and exceptional EBITDA margins of around 50%. Even during Pandemic in 2020, the revenue increased by about 4% and EBITDA increased by 9.3% and 2021 first quarter is busier than ever.

The company serves primarily the market in California and offers Non-Destructive Testing, Specialized Field Service Testing, Technical Support, and Laboratory Testing. A large part of Laboratory Testing is for FRP composite testing application, a niche testing that the lab does. About 80% of revenue is from Field services and about 20% of revenue is from Laboratory Services. Its customers are primarily Developers, Architects, Contractors, and Referring Engineers who drive work to them.

The lab is an excellent opportunity for the right buyer. The seller would prefer a buyer/company with a background or Experience in Structural Engineering, Geotech Engineering, and/or Civil Engineering as the opportunity is a bit technical.  It also offers a great growth opportunity from better marketing, expanding geographically, and offering more services. Also, the seller is in the process of getting another certification from the city that will significantly expand the amount of work it will get from the city. It has also been pre-qualified by a prominent SBA-lender.

The Company typically does on average about 100 projects in a year. It is quite selective about the projects it undertakes and as a result, it wins about 75% of the proposals it submits.


2021- 8 months 2020 2019 2018
REVENUE 1.04M 1.21M 1.17M 1.10M
EBITDA 508K 608K 556K 541K


The Company has a staff of 10-13 people, which include a senior Structural Engineer (MS, PE), an experienced operational manager, three senior engineers, and 6-9 Field Technicians. Its intellectual property includes detailed templates for proposals and reports for various types of work and operations managers, and senior engineers are all involved in this.


  • Consistently profitable, high EBITDA margins
  • Excellent growth potential (Company has no marketing, not even a website)
  • Established network of loyal business sources – steady pipeline year after year
  • Market niche, quality equipment, staff
  • Three decades of developed intellectual property
  • New pending license likely to open up new large contracts


The owners have run this business as a lifestyle business and have been able to live a very comfortable lifestyle running this business. But for a growth-oriented buyer, there are plenty of opportunities to grow – by online marketing (the Company does not even have a website at present), by formal marketing process, by geographic expansion, and/or by offering more services.

The founder, having worked in this field for 45 years and running this Company for 37 years, is looking for well-deserved retirement but is also committed to offering transition help and also longer-term part-time consulting help to the buyer to ensure that the buyer is successful and his legacy lives on.


The Sellers are asking for $2.25M which is at a very fair multiple on the EBITDA.  The business comes with many positives that the business comes with – consistent revenue, extremely high EBITDA margin, reliable pipeline, capable staff to carry on the operation, and excellent growth prospects.

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