High-Growth Opportunity in a Large Metro Market
This 25-year-old, family-owned laboratory started as a small garage operation. Today the Company has grown in size and is housed in its own 4,800 square feet building. It is highly regarded for its accuracy, reliability, and professionalism. The Lab serves its local and national customers with its dedicated staff and excellent customer service, whether a local residential customer or a national corporation.
Having worked in this Lab for 25 years, the founder-owner of the Lab is looking to retire but is willing to stay on to help the new owner in transition.
The Lab used to do some consultation work before 2020 but has stopped doing it since 2020. The consulting work would certainly add at least about $300K worth of revenue and about $150K worth of EBITDA. The Lab can do the consulting work, but it will be the buyer’s choice. It will need to reapply and get the necessary certification.
Covid impacted a significant portion of the revenue of the Lab in 2021, but the Lab has seen strong growth in volume in 2022 and expects a strong finish with revenue of about $870K (based on first-quarter results). The revenue growth has also been aided by the 10-15% price increase that went into effect at the beginning of 2022.
The Lab, although small, has tremendous growth potential. It is in a busy and large market and has carved out a good niche for itself and built a large and loyal customer base. Over the past three years, it has served about 70-75 clients. Typically in a given year, it services about 40 clients. A marketing person can add significantly more revenue. Restarting the lucrative consulting services could also help add additional income.
|(All figures are in USD thousands)||2022(proj)||2022
|% of Total Revenue||20.0%||14.3%||11.9%||26.0%|
Covid and suspension of the consulting business have impacted the Lab’s top and bottom line, particularly in 2021, but the Company is bouncing back. With additional marketing, it can thrive. The Lab comes with about 70-75 active customers.
Note that the Lab can quickly increase the revenue by $300K and EBITDA by $150k if the buyer chooses to restart the consulting services. And with some more marketing, it can do much better in this large Metro market.
We are asking for $800K for the Lab.