Consistently Profitable – Stable Revenues – High Growth Opportunity
For over 30 years, this structural testing lab has provided exceptional and trustworthy services. Its revenues and EBITDA have been consistent for the past several years. Its revenue has been between $1.1-$1.2M, and it offers an impressive EBITDA margin of around 45-50%. During the pandemic, its revenue remained stable. The current year is off to a promising start. The management projects the current year's revenue to jump by about 25-30% to $1.6M. The steep increase in 2022 is due to successful entry into a new industry segment of building testing. This expansion should bring lucrative new projects in the future.

The Company primarily serves the Southern California market and offers Non- Destructive Testing, Specialized Field Service Testing, Technical Support, and Laboratory Testing. A large part of Laboratory Testing is a niche market of FRP composite testing applications. About 80% of revenue is from Field services, and about 20% is from Laboratory Services. Its primary customers are Developers, Architects, Contractors, and Structural Engineers

The Company, on average, does around 100 projects in a year. The Company wins most contracts it bids on by selectively bidding on only promising opportunities.

Revenue: $1.25M (2021); $1.6M (forecast for 2022) (28% increase)
EBITDA: $571 K (2021); $720K (forecast for 2022)
EBITDA Margins - 45-50%

• Consistently profitable, high EBITDA margins
• Excellent growth potential (Company has no current marketing, not even a website)
• Experiencing High Growth since entering a new market segment
• Established network of loyal business sources – steady pipeline year after year
• Market niche, quality equipment, and motivated staff
• Three decades of developed intellectual property

The owners have run this business as a lifestyle business which has provided them with good income over the years. The founder has worked in this field for 45 years and has run the Company for 37 years. He is looking for a well-deserved retirement. But he is also committed to offering transitional help and part-time consulting to ensure that the buyer is successful and his legacy lives on. The Seller would prefer the buyer has background and experience in Structural Engineering, Geotech, or Civil Engineering as the business is reasonably technical.

The asking price of the business is $2.6M, at a very reasonable multiple of its EBITDA. It comes debt-free and with additional growth potential for a more energetic and expansion-oriented owner.

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