Business Overview

Business Highlights:

– High Traffic Location
– COVID Proof
– Long Time Regular Customers
– Opportunity for Growth
– Very Reasonable Lease
– Minimal Owner Involvement

This well-established business has enjoyed community support for over 10 years. The company provides certified drug and alcohol testing, hair follicle drug testing, manual and digital fingerprinting, nationwide criminal background checks, and DNA screening for individuals, schools, courts, businesses and industries. The company enjoys a high repeat customer base.

The operation is turn-key with a small office space footprint that includes all the requisite equipment in hygienic suites equipped with well-maintained tools and equipment. High margins, low employee count, and plenty of room to grow with the business only operating 3 days per week.

Financial

  • Asking Price: $79,000
  • Cash Flow: $40,423
  • Gross Revenue: $132,995
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: $7,000
  • Inventory Included: Yes
  • Established: 2011

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:3
  • Furniture, Fixtures and Equipment:N/A
Purpose For Selling:

Retirement

Additional Info

The company was established in 2011, making the business 11 years old.
The deal shall include inventory valued at $7,000, which is included in the requested price.

The business has 3 employees and is located in a building with estimated square footage of N/A sq ft.
The building is leased by the company for $675 per Month

Why is the Current Owner Selling The Business?

There are all sorts of reasons individuals decide to sell businesses. However, the true reason vs the one they say to you may be 2 entirely different things. For instance, they may claim "I have way too many other obligations" or "I am retiring". For numerous sellers, these factors stand. However, for some, these may simply be reasons to attempt to conceal the reality of altering demographics, increased competitors, current decrease in earnings, or an array of various other factors. This is why it is extremely vital that you not depend completely on a seller's word, yet instead, make use of the vendor's answer together with your total due diligence. This will paint a more practical image of the business's existing situation.

Existing Debts and Future Obligations

If the current entity is in debt, which many businesses are, then you will need to consider this when valuating/preparing your deal. Many businesses take out loans in order to cover items such as inventory, payroll, accounts payable, and so on. Keep in mind that in some cases this can imply that earnings margins are too small. Numerous organisations come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may additionally be future commitments to think about. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with suppliers that need to be met or may cause fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the area bring in new consumers? Often times, companies have repeat consumers, which create the core of their day-to-day earnings. Specific variables such as brand-new competition growing up around the location, roadway building, and staff turn over can affect repeat clients as well as negatively influence future profits. One important thing to think about is the placement of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Undoubtedly, the more individuals that see the business regularly, the better the possibility to build a returning consumer base. A last thought is the general area demographics. Is the business situated in a largely populated city, or is it situated on the outskirts of town? How might the regional typical home earnings impact future earnings potential?