Business Overview

Mid-Atlantic Region

The company’s sterling reputation combined with its long history in the clinical trial marketplace has established it as one of the premier firms in its long-term care niche. 2021 results are continued evidence of increasing strong cash flow and demand for its clinical research services. It continues to capture significant contracts collaborating with major universities and pharmaceutical companies.

In business for over 25 years, the company has developed an expertise in conducting clinical trials in the long-term care setting. These trials, ranging from Phase II through IV, and more recently, innovative designs to create real world data on the effectiveness of devices, biologics, and medications. The company has an extensive client database and sites in which they have conducted clinical trials. They have experience in a broad range of therapeutic areas and product categories including investigational and licensed medications, biologics, and medical devices.

The Company’s growth continues in 2021 with a rich pipeline of future work. Current contracted work for the next two years is over $8.6 million. Its expertise is in high demand. Revenues are achieved with minimal marketing. In addition, the company has developed a clinical trial management system specialized clinical trial management and electronic data capture platform that allows for global management at complex clinical trials and accurate data management.

For an existing CRO business, this is a great strategic acquisition opportunity to immediately purchase a predominant established business to capitalize on its long-term goodwill, reputation, and client base. Owners are willing to remain in leadership roles to continue the current growth. Upon proper qualification of the potential acquirer, including the customary exchange of financial information and confidentiality agreements, a detailed Confidential Prospectus will be provided. All inquiries will be held in strictest confidence.

Purchase Price: $12,000,000
Gross Revenues: $6,913,764
SDCF: $2,763,883
Normalized EBIDTA: $2,583,460

Financial

  • Asking Price: $12,000,000
  • Cash Flow: $2,763,883
  • Gross Revenue: $6,913,764
  • EBITDA: $2,583,460
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A

Additional Info

The real estate is leased by the company for $7,500 per Month

Why is the Current Owner Selling The Business?

There are all sorts of reasons why people decide to sell companies. Nevertheless, the genuine factor and the one they tell you may be 2 entirely different things. For instance, they might say "I have a lot of various responsibilities" or "I am retiring". For lots of sellers, these reasons stand. But also, for some, these might just be justifications to try to hide the reality of altering demographics, increased competitors, recent reduction in revenues, or a variety of various other factors. This is why it is really important that you not rely absolutely on a seller's word, yet rather, use the vendor's solution together with your general due diligence. This will repaint a more realistic picture of the business's present circumstance.

Existing Debts and Future Obligations

If the current business is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your offer. Lots of businesses take out loans so as to cover things such as stock, payroll, accounts payable, etc. Remember that in some cases this can mean that revenue margins are too tight. Many companies come under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to think about. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with vendors that have to be met or might cause penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the area bring in new customers? Often times, companies have repeat clients, which form the core of their day-to-day earnings. Certain factors such as brand-new competitors sprouting up around the location, roadway building, and also staff turn over can impact repeat consumers and adversely impact future earnings. One important point to consider is the location of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Certainly, the more individuals that see the business regularly, the higher the possibility to build a returning client base. A last thought is the basic location demographics. Is the business located in a largely inhabited city, or is it located on the edge of town? Exactly how might the regional median house income impact future revenue prospects?