Supplies 3,000 Standardized Reagents – Provides a Great Platform for Growth
The Laboratory specializes in many types of certified analytical standards/solutions laboratories in the US and Canada. Its products cover:
a. Single-component environmental standards (volatiles, semi-volatiles, and more)
b. Pesticides, PCBs
c. Standards for EPA 500, 600, 1300, 1600, 8000 Series Methods
d. Polychlorinated biphenyl congeners, arocolors
e. Petrochemicals, underground storage standards
f. Inorganic standards
g. Cannabis product testing standards
It sells about 3,000 different analytical standards; although small, it is quite a unique, one-of-a-kind Lab.
The lab is a modern facility in a metropolitan city. It has new furniture and hoods and is a very clean laboratory.
The Lab operates in accordance with ISO 17025 and ISO 17034 standards. It has a continuous LOI with ANALAB, which indicates the Lab’s intention to follow ISO specifications and get the inspection done. The Lab has not received the formal inspection because almost all its customers do not require ISO certification, and it didn’t want to incur the added expense of maintaining the ISO. Besides, the owner is looking to exit. However, every piece of equipment and material the Company uses is from ISO-certified vendors, and the buyer can get the certification if desired.
This business is ideal for a buyer already running a chemistry/analytical lab or a competitor, a chemist looking to branch out on his/her own, companies, PE groups, or funds with such companies in their portfolio.
Major Highlights
- – It sells certified analytical standard solutions of various types for laboratories (environmental testing, EPA standards, for testing of pesticides, cannabis, petrochemicals, and more)
- – It is a somewhat unique business but involves simple chemistry (mixing various solutions). The stock stored standards remain stable for many years because the stock solutions are at pretty high concentrations.
- – One full-time chemist can handle The current lab operations, making the Lab easy to manage remotely.
- – 2024 off to a great start – $111,400 in 5 months (straight line extrapolation gives revenue of about $270K and SDE of $150K).
- – Great growth potential – The Lab has not directly marketed the products. Only done via a distributor who distributes many products.
Financials And Asking Price
Over the past three years, the revenue has averaged about $200K, and DE at about $120K. 2024 is off to a solid start – Jan-May 2024 revenue is $111,400. Straight-line extrapolation for the entire year projects revenue at about $270K and DE at about $150K.
The asking price is $995K. It comprises of:
- – $250K for raw material in stock at cost
- – $250K of product inventory at a 50% discount over the $500K market price of products (The products are stable for many years)
- – $495 for the cost of the business
The seller is willing to carry a small seller note if needed.
When inquiring about the lab, please provide your business email and some information about your company and your background.
