Cash Flow Rich Drug Testing Services Company

Business Overview:

This well-known Drug & Alcohol Testing Services Company has provided expert support and services to an impressive roster of Government, Municipal, School, Union and Corporate accounts for almost 35 years. The Company has experienced stable revenues (with $200k in annual service contracts in place) and enjoys high operating margins with documented profitability.

The company has been fully reviewed and conservatively appraised by a well-known national valuation firm at 4.7 x EBITDA (ttm). A full valuation report is included and there is $50,000 in Net Working Capital plus another $150,000 in Fixed Assets included in the deal. The business is pre-qualified by an SBA lender subject to buyer’s financials, and by implementing the proposed deal structure an owner operator will obtain more than $125k benefit in after- acquisition-debt cash flow in Year #1 – over 60% return on equity investment.

A comfortable transition period will be provided by an owner who truly wants to continueto see the business flourish. Seller will consider a consulting agreement thereafter. A well-trainedand highly qualified team will stay in place to support new owner in all aspects of the business.

(ALL DATA BASED ON SIGNED TAX RETURNS)

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Property Features and Assets:

The seller’s 1,500 Square Feet leased facility is in a prime location with very attractive/flexible lease terms.

Market Competition and Expansion:

The Company enjoys a competitive advantage by leveraging a distinct “white glove solution” to provide its diverse client base with exceptional customer service and fair pricing – stability and growth have been the result. This is a turnkey operation with experienced management, modern equipment and dedicated field crews in place.

It is projected that a new owner will obtain compelling additional growth by expanding the direct sales and marketing efforts with a minimal personnel and equipment investment of $100,000 to $125,000 per year. The company projects an accelerated revenue growth rate under such premise of 20% to 30% per year.

Reason for Selling:

Additional Details:

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