Business Overview

Profitable Tulsa area drug screening facility with a lot of room for growth. This business prides themselves on treating each client with respect and dignity while protecting the integrity of their testing. This company works with a variety of clients from court programs, employers, staffing agencies, and treatment diversion programs. Currently the owner works 20 hours a week, however the owner has procedures and training in place to be absentee owned.

Financial

  • Asking Price: $1,726,710
  • Cash Flow: $417,468
  • Gross Revenue: $748,000
  • EBITDA: N/A
  • FF&E: $10,000
  • Inventory: $27,300
  • Inventory Included: Yes
  • Established: 2020

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:3,600
  • Lot Size:N/A
  • Total Number of Employees:7
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Owner subleases approximately 600 square feet.

Is Support & Training Included:

30 days

Purpose For Selling:

To pursue other opportunities

Opportunities and Growth:

Target more diversion programs, universities, public schools, and athletic departments.

Additional Info

The business was established in 2020, making the business 2 years old.
The sale does include inventory valued at $27,300, which is included in the suggested price.

The business has 7 employees and is situated in a building with estimated square footage of 3,600 sq ft.
The real estate is leased by the company for $2,550 per Month

Why is the Current Owner Selling The Business?

There are all types of reasons people decide to sell operating businesses. Nonetheless, the genuine reason vs the one they tell you might be 2 completely different things. As an example, they may claim "I have too many various commitments" or "I am retiring". For numerous sellers, these factors are valid. But also, for some, these might just be excuses to attempt to conceal the reality of changing demographics, increased competition, recent decrease in incomes, or a range of various other factors. This is why it is very vital that you not depend completely on a vendor's word, however rather, make use of the seller's answer together with your overall due diligence. This will paint a more reasonable image of the business's existing situation.

Existing Debts and Future Obligations

If the existing company is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your deal. Lots of operating businesses finance loans in order to cover points such as inventory, payroll, accounts payable, and so on. Bear in mind that occasionally this can mean that profit margins are too thin. Numerous organisations fall under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may likewise be future obligations to take into consideration. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with suppliers that should be met or might cause charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the area draw in brand-new consumers? Most times, businesses have repeat clients, which form the core of their daily earnings. Specific factors such as brand-new competitors sprouting up around the area, road building and construction, and also staff turn over can affect repeat customers and also adversely affect future earnings. One important thing to think about is the location of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Obviously, the more people that see the business on a regular basis, the better the chance to build a returning client base. A last thought is the basic location demographics. Is the business placed in a largely inhabited city, or is it situated on the outside border of town? Exactly how might the neighborhood typical family earnings impact future earnings potential?