Valuation resource for specimen collection/ testing services business?

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March 04, 2022

by a searcher from The Johns Hopkins University in Tennessee, USA

IBIS and BVR have tangential relevance for this type of business, but lack apple to apple comparison.

Quick profile of target:
Revenue less than $500k
Seller discretionary earnings are about 20%
2 FTE plus owner/ operator

Interested in your thoughts on valuation resources outside the above mentioned. This is my first acquisition; I appreciate your time and insights.

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Reply by a searcher
from Texas A&M University in Johnson City, TN, USA
SDE $100k if I read this right. So EBITDA would be zero if you take out $100k owner's comp?

I would encourage you to look for a little bigger size for the first deal, unless you have really compelling reasons for this industry or business.

If you are going to do it, just work out some revenue sharing / royalty plan with Seller, don't put down anything for zero EBITDA at this size.
commentor profile
Reply by a searcher
from The Johns Hopkins University in Tennessee, USA
Appreciate the feedback.I'm leaning towarda larger deal, but this caught my interest.I like the suggestion of a revenue sharing arrangement.
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