Listing ID: 80435
This is an established 35-year-old medical diagnostics company.
It is the only company with a test for 16 Serogroups of Legionella. Others only test for Serogroup 1 which leaves them at risk of missing positive tests in the other Serogroups.
It was founded by one of the original researchers with the CDC working on the Legionnaires Disease outbreak. The Company has trademarks and copyrights related to legionella testing.
Legionnaires Disease is a worldwide concern and testing of water supplies is often government mandated along with strict regulations. As an example, New York City has a requirement for testing to prevent and control the growth of Legionella.
The company has a remarkable inventory of products needed to test for legionella.
At their current sale prices, the included inventory is worth over $15 million.
A new owner would likely be able to raise prices while growing the business.
This Company would be a great add-on acquisition for a company working with labs, hospitals, and other facilities in the medical diagnostic testing market.
For a buyer with established industry relationships, rapid growth and profit would be probable.
- Asking Price: $2,900,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: $10,000
- Inventory: $15,400,000
- Inventory Included: Yes
- Established: 1998
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:2
- Furniture, Fixtures and Equipment:N/A
The Company needs to be relocated… anywhere in the world. Would be a very easy move.
Smooth transition will be included.
Current owner is ready to retire.
There are several companies offering some form of legionella testing, but none offer as complete a line of testing for all strains and serogroups. Many competitive tests are not specific, and results are not always reliable. This company will offer a new owner both a quality and extensive product line.
During the last 5-10 years, the current owner has done nothing to promote or grow the business. There has been no effort to establish new customers. There is no marketing or advertising, and the website is very old and not useful. The Company is almost entirely word-of- mouth with sales to established customers. A new owner with a marketing plan could see very substantial rapid growth. The annual market for legionella testing is currently about $250 million with a projected growth rate of 8-9%
The business was started in 1998, making the business 24 years old.
The sale does include inventory valued at $15,400,000, which is included in the asking price.
Why is the Current Owner Selling The Business?
There are all types of reasons why people resolve to sell businesses. However, the true factor vs the one they say to you might be 2 completely different things. As an example, they may state "I have way too many other obligations" or "I am retiring". For many sellers, these reasons are valid. However, for some, these might just be reasons to try to conceal the reality of transforming demographics, increased competition, current reduction in profits, or a range of other reasons. This is why it is very important that you not rely entirely on a vendor's word, yet instead, make use of the seller's answer along with your overall due diligence. This will repaint a more realistic picture of the business's current scenario.
Existing Debts and Future Obligations
If the current company is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your deal. Lots of operating businesses take out loans so as to cover items like inventory, payroll, accounts payable, and so on. Remember that sometimes this can indicate that earnings margins are too thin. Many companies fall into a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may likewise be future obligations to consider. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with vendors that should be fulfilled or may result in fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the area bring in brand-new customers? Many times, companies have repeat consumers, which form the core of their daily earnings. Particular factors such as brand-new competition sprouting up around the area, roadway building, and also personnel turnover can impact repeat consumers and also negatively affect future incomes. One essential point to think about is the location of the business. Is it in an extremely trafficked shopping center, or is it concealed from the main road? Certainly, the more individuals that see the business regularly, the better the chance to construct a returning consumer base. A last thought is the general location demographics. Is the business located in a largely populated city, or is it situated on the outskirts of town? Just how might the neighborhood mean house income influence future earnings potential?