Well-Established, Profitable Environmental Lab in Southwest
Ideal for an Entrepreneur or a Lab wanting to Get Into the Region
This well-established environmental Lab, founded twenty-two years ago, specializes in ICP-MS elemental analyses, trace metals, and inorganic testing. It has managed to maintain its clients by exceeding their expectations by providing personalized, accurate, and quicker service than some of the larger competitors.
The owner has worked in the industry for 30 years and is ready to retire, pursue volunteer opportunities, and travel.
The Lab would be ideal for an entrepreneur chemist or another lab that wants to establish a base in this Southwest State or gain the Lab’s client base. For a growth-oriented buyer, the Lab provides a platform for growth. An ISO certification and additional licenses can offer a lucrative path to cannabis/hemp testing.
Environmental sample testing is a core strength of this Lab. The Company has extensive knowledge and experience working on projects for engineering, consulting firms, municipalities, utilities, mining, chemical, waste management, transportation, electronics, and petroleum industries. These projects include analytical test methods from the following compendiums.
- Test Methods for evaluating Solid Waste, SW-846 (USEPA)
- Methods for the determination of metals in Environmental samples (USEPA)
- Standard Methods for the Examination of Water and Wastewater (APHA, AWWA, WEF)
- Methods of Chemical Analysis of Municipal and Industrial Wastewater (USEPA)
- Methods doe Determination of Inorganic Substances in Environmental Samples (USEPA)
- American Society for Testing and Materials (ASTM)
The Lab also provides testing for trace metals, minerals, and major elements in all types of dietary supplements products that include:
- Elements of class 1 are required to be tested for their higher degree of toxicity.
- Under Class 1: Arsenic (As): Cadmium (Cd): Mercury (Hg): Lead ( Pb)
- Elements in class 2 are less toxic and require to be tested if they are part of the manufacturing Process.
FINANCIALS AND ASKING PRICE
- Revenue: $457K (2022)
- Discretionary Earnings (Seller’s Discretionary Cash Flow): $136K (weighted avg of last three years)
- Asking Price: $275K
The asking price of $275,000 is a very reasonable multiple (2x) of the weighted Seller’s Discretionary Cash Flow (SDCF), also known as Discretionary Earnings. The buyer gets an established Lab with all the licenses as a platform for growth. The owner treated the business as a lifestyle, providing a steady income. An ambitious buyer has a lot of avenues to grow the business. These include more aggressive marketing and expanding into nutritional supplement testing and cannabis testing, which would need an ISO certification and some additional licenses.