Great Reputation – Consistent Profits – Solid Growth Opportunity
by Capturing $1.8M Lost Revenue
The Lab provides independent laboratory testing services for building envelope products to ensure compliance with the local Building Codes. The Company conducts testing of both new and pre-installed systems, covering areas such as Fenestration, Exterior Wall Repair, Roofing, and Hurricane Protection Testing.
The Lab utilizes its state-of-the-art laboratories to extend services to manufacturers, general contractors, and roofing contractors. It provides manufacturers with product testing, quality assurance, R&D support, and certification services. It helps general contractors in material selection, evaluation, and forensic analysis. Lastly, it aids roofing contractors with detection and testing services and energy efficiency solutions.
SERVICES
The Lab offers the following testing services:
- Fenestration Services
- Exterior Wall Repair
- Roofing Services
- Hurricane Protection Services
HIGHLIGHTS
- The Lab’s rigorous testing methodologies and high certification standards for building protection have been integrated into the Local Codes as a benchmark for conducting Holistic Structural Resilience Testing.
- The Lab has been consistently profitable, with revenues generally between 400K – 500K in recent years. 2022 was somewhat of a down year, but the revenues have rebounded strongly in 2023.
- The Lab has low direct costs, maintaining it at approximately 0.3-0.4% of revenue. This shows that the Company is highly profitable and allows it to set competitive service pricing. Its SDE margins have stayed between a healthy 35-40%.
- The Company’s owners have treated this business as a lifestyle business. The owner had worked at large companies and managed as many as 80 people under him. He chose to start on his own, maintaining consistent revenues and profits. de
- The Lab consistently gets 2-3 daily inquiries for jobs that need off-site work. Because of a lack of staff, the lab turns down these jobs and only does jobs it can do in the lab. At two jobs per working day and an average job bringing $3,000 in revenue, this amounts to about $1.8M in lost revenue that can be captured.
FINANCIALS
- Revenue (2023): $583K (projected from 6 months)
- Cash Flow (SDE) (2023): $222K (projected from 6 months)
ASKING PRICE
The asking price for the Lab is $750K plus earnout on future performance. A growth-oriented Buyer can triple the business. The Company refuses 2-3 on-site jobs daily due to a lack of personnel resources. At average revenue per job at $3000, the buyer with additional personnel can recoup about $1.8M by hiring extra help. The Seller is willing to stay on to help the buyer for some time.
When inquiring about the lab, kindly inquire with your business email, and please provide some information about your company and your background.
