Business Overview

This certified laboratory specializes in the testing of drinking water and wastewater for residential, commercial, and government clients. For almost 30 years, this small lab has built a stellar reputation for excellence in this affluent suburban Maryland community. Over the years, this lab has provided testing for residential developments, schools, hospitals, office building and military bases.

The company prides itself on doing the highest quality work that meets or exceeds rigorous Maryland standards for testing. The 9 employees are experienced technicians who work in the lab and directly in the field.

This opportunity is ideal for the experienced environmental scientist or technician looking for a turn-key business in a booming region. The seller is willing to train the new owner during an extended transition to ensure a smooth transfer.

Pre-qualified for lender financing (subject to full underwriting)!

Financial

  • Asking Price: $360,000
  • Cash Flow: $129,453
  • Gross Revenue: $522,185
  • EBITDA: N/A
  • FF&E: $46,075
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 1995

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:4
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

3000 SF facility is located in a high-technology business park. Facility is approximately 35% office space, 65% lab space. Owner has been in the same facility for 16 years.

Is Support & Training Included:

Will train for 2 weeks @ $0 cost. The lab is required to maintain a state certification through the Maryland Department of the Environment (MDE).

Purpose For Selling:

Owner wishes to pursue interests with a non-profit organization.

Pros and Cons:

Clean drinking water and safe wastewater are essential in our growing urban and suburban communities. Developers and institutions must comply with rigorous state standards, and only a handful of labs are state-certified to perform this testing.

Opportunities and Growth:

Ample opportunity for growth with a dedicated sales focus and expansion of lab facilities. As a State-certified laboratory, the new owner will be able to service hundreds of clients who have permits requiring regular and repeat testing annually. With the state certification, comes access to all of the individual permits listed in the entire state database for marketing and growth. This is a consistent source of re-occurring revenue, regardless of economic conditions. Several school system and military base contracts are also available within a 50 mile radius.

Additional Info

The business was started in 1995, making the business 27 years old.

Why is the Current Owner Selling The Business?

There are all types of reasons individuals decide to sell businesses. Nevertheless, the genuine reason vs the one they say to you might be 2 completely different things. For instance, they might state "I have a lot of other obligations" or "I am retiring". For lots of sellers, these reasons are valid. But also, for some, these might just be justifications to attempt to conceal the reality of transforming demographics, increased competitors, recent decrease in revenues, or an array of other reasons. This is why it is really crucial that you not depend absolutely on a seller's word, however rather, make use of the vendor's answer in conjunction with your total due diligence. This will paint an extra sensible picture of the business's current situation.

Existing Debts and Future Obligations

If the existing entity is in debt, which many companies are, then you will need to consider this when valuating/preparing your deal. Lots of businesses finance loans so as to cover points like stock, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can indicate that revenue margins are too thin. Numerous companies come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may additionally be future obligations to consider. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with suppliers that have to be satisfied or may result in charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the location bring in brand-new consumers? Many times, companies have repeat customers, which develop the core of their daily revenues. Certain factors such as brand-new competitors sprouting up around the area, roadway building, as well as staff turn over can influence repeat consumers as well as adversely impact future revenues. One crucial thing to take into consideration is the location of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Clearly, the more people that see the business on a regular basis, the higher the possibility to build a returning consumer base. A last thought is the basic location demographics. Is the business situated in a largely inhabited city, or is it situated on the outskirts of town? Just how might the local typical house earnings influence future income prospects?