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

Consistently Profitable – Stable Revenues – High Growth Opportunity

testing machine

For over 30 years, this structural testing lab has provided exceptional and trustworthy services. Its revenues and EBITDA have been consistent for the past several years. Its revenue has been between $1.1-$1.2M, and it offers an impressive EBITDA margin of close to 50%. During the pandemic, its revenue increased slightly.

The Company primarily serves the Southern California market 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% is from the Laboratory Services. Its customers are primarily Developers, Architects, Contractors, and Referring Engineers who drive work to them.

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












REVENUE 1.25M 1.21M 1.17M 1.10M
EBITDA 571K 608K 556K 541K
Weighing Factors 60% 30% 10%
Weighted EBITDA $581K


Since this Lab is classified as an essential business, its operation was not seriously impacted during the current pandemic. However, some projects were placed on temporary precautionary hold because California had been severely hit and became a hot spot for Covid. The business, however, did quite well, both in 2020 and 2021.

The Company’s staff is 9-12 people, including 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.


  • – 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, and motivated staff
  • – Three decades of developed intellectual property


The owners have run this business as a lifestyle business and have lived a very comfortable lifestyle running this business. But for a growth-oriented buyer, there are plenty of opportunities to grow. These include online marketing (the Company does not even have a website), a formal marketing process, geographic expansion, and more services. FRP testing, where the Company has niche expertise and where it can provide services globally, could be an excellent growth area.

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 longer-term part-time consulting help to the buyer to ensure that the buyer is successful and his legacy lives on.

The Seller would prefer to have the buyer have a background and experience in Structural Engineering, Geotech, or Civil Engineering as the business is reasonably technical.

The Lab does have a well-organized staff with an excellent operational manager that takes care of day-to-day work. As a result, the Seller rarely has to go to the sites or the office. The owner is mainly occupied with writing proposals and reviewing the final reports. The Lab has developed templates for proposals and reports, and this knowledge can easily be transferred to the new owner.


 The asking price of the business is $2.6M, at a very reasonable multiple of its EBITDA. It comes debt-free, with lots of growth potential for a more energetic and growth-oriented owner. It also comes with a lot of intellectual property, including the templates for creating proposals (that win a large percentage of awards) and many templates for reports.

Note: When inquiring about the lab, please email from your business address, and provide some details about your background, your company, and your ability to buy this lab.

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lab scientist