Business Overview

HemoGenix, Inc. (HG) was founded in 2000 and continues to be a key player in stem cell assay market. HemoGenix has developed superior proprietary testing procedures for toxicology testing which have been used by biopharmaceutical companies nation-wide for new drug candidates. Many of the tests sold worldwide have been further developed for in-house testing for stem cell and veterinary research, cellular therapy, and regenerative medicine. In 2017, Preferred Cell Systems, Inc. (PCS) was formed and the new website www.preferred-cell-systems.com was launched to help further educate, productize, and market these advanced testing kits and assays. HemoGenix currently has a research contract related to COVID-19 for toxicity testing which is required by the FDA for any new drug. Subject to additional approvals the contract could be significantly larger. With the renewed global emphasis on reliable testing platforms, HG/PCS are ready for new ownership to leverage long established industry relationships for contract services and further scale the distribution of its many developed kits and assays. The resurgence in 2021 has already generated a substantial increase over last year with Q1 revenues over $300K ($240K for HG and $67K for PCS) with a combined Adjusted EBITDA over $270K. The current owner has built an experienced, well-trained team to fulfill all orders and only works to help procure new business. He is looking to retire but would like to consult for a negotiated timeframe to help in the successful transition of the intellectual property and all in?house lab procedures.
(Although the owner has approved the disclosure of the business names, all inquiries should be directed to The FBB Group.)

Financial

  • Asking Price: N/A
  • Cash Flow: $199,992
  • Gross Revenue: $634,258
  • EBITDA: $199,992
  • FF&E: $297,000
  • Inventory: $30,000
  • Inventory Included: Yes
  • Established: 2000

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:8
  • Furniture, Fixtures and Equipment:N/A
Purpose For Selling:

Retirement

Additional Info

The company was founded in 2000, making the business 22 years old.
The sale shall include inventory valued at $30,000, which is included in the suggested price.

Why is the Current Owner Selling The Business?

There are all sorts of reasons why individuals resolve to sell companies. Nevertheless, the true factor and the one they tell you might be 2 completely different things. As an example, they may state "I have way too many various commitments" or "I am retiring". For many sellers, these reasons are valid. But, for some, these may simply be justifications to attempt to hide the reality of changing demographics, increased competitors, recent decrease in profits, or an array of various other reasons. This is why it is really essential that you not count entirely on a vendor's word, yet instead, utilize the vendor's answer together with your overall due diligence. This will paint an extra practical image of the business's current scenario.

Existing Debts and Future Obligations

If the current business is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your deal. Lots of businesses take out loans so as to cover items like supplies, payroll, accounts payable, etc. Remember that in some cases this can mean that earnings margins are too small. Numerous companies fall under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may likewise be future commitments to consider. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with suppliers that have to be satisfied or may lead to fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do operating businesses in the location draw in new customers? Many times, companies have repeat customers, which form the core of their daily profits. Certain elements such as brand-new competitors sprouting up around the location, road building, as well as staff turnover can affect repeat customers and negatively influence future revenues. One essential thing to consider is the placement of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Clearly, the more individuals that see the business on a regular basis, the greater the possibility to construct a returning customer base. A last thought is the basic area demographics. Is the business situated in a largely populated city, or is it located on the outside border of town? Exactly how might the local median home earnings impact future income potential?