UNDER LOI
NELAC Accredited Lab with Consistently Increasing Revenues
Potential to Become a Major Profit Center with More Management Focus
This is one of the top environmental laboratories on the Island. It operates as a full-service monitoring and analytical ecological laboratory. It provides services ranging from discharge/wastewater analysis, trace metal and hazardous pollutant analysis, drinking water testing, and sampling services for water, groundwater, soil, and wastewater.
The Lab has a large client base of diverse industries, consultants, government agencies, and organizations. Additionally, it caters to the stringent demands of highly regulated sectors, including pharmaceuticals.
A strategic buyer can dramatically increase the profit margins to become a growth and profit center by making a few improvements. This family-run company has been connected with its larger sister company and is not getting enough attention. The Company recognizes that it will reach its true potential of this Labunder a strategic buyer.
Key Features
– Established market presence and a loyal client portfolio
– Strong industry network by collaborating with various clients and industry regulators.
– 7,000 sq. ft. facility, fully equipped to support dynamic growth and extensive testing capabilities.
– Diversified revenue streams through specialized services, ensuring stability and reducing dependency risks.
– Consistent Revenue Growth over the past five years (even during Covid)
Growth Initiatives
– Increase the prices (10-15%. Prices have not increased in a while)
-Expand service portfolio by including complementary offerings
– Integrate Modern LIMS to increase productivity and profits
– Decrease raw material sourcing and costs
These initiatives will allow the Company to grow its profits by over $300-350K annually. Additionally, it may be able to accept more work, which it is sometimes not able to pursue because of operational inefficiencies.
Financial Performance
The Lab consistently generated over $1.4M annually from 2019 to 2022 and about $1.8M in revenue projected for 2024 (an increase of about 8% over last year). Its diverse client base ensures continued profitability, even during crises such as COVID-19. The Lab is now showing positive EBITDA, but the recommended efficiencies can boost its bottom line by another $300-$350K.
Reason for Sale
As a family-run business, the Lab recognizes its growth limitations. It seeks to sell to an external entity that can devote more attention to this lab so that it can reach its full potential.
Asking Price
The asking price is $1.6M, approximately 0.9x its annual revenue. The business has a solid foundation, great reputation, industry know-how, and relevant certifications, including NELAC, so it can work nationally and serve as an engine of growth in the Caribbean market.
When inquiring about the lab, please contact from your business email and provide some information about your company and your background.
