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#1517 Life Sciences Products and Contract Services
Health Care
Health Care
Health; Service
Asking Price:
Down Payment:
Adj. Profit:
Adj. Profit Type:
Seller's Discretionary Earnings  

Life Sciences Products and Contract Services - This life sciences contract research service company was founded in 2000 and is a key player in stem cell assay market.  The company has developed patented and proprietary tests for in vitro toxicology testing of new drug candidates developed by biopharmaceutical companies.  All of these tests and many others have been further developed for in-house testing for stem cell and veterinary research, cellular therapy and regenerative medicine and toxicology and sold as testing kits worldwide. This business is ready for new ownership to leverage its existing industry relationships and further profit by fully scaling the distribution of its many product lines.   As of September 2018, gross sales have nearly doubled and SDE is nearly $150K. The owner is looking to retire, but is willing to stay on for a period of time to help in a successful transition of the intellectual property and all in-house lab procedures.  Contact Rob Amerine.   BUSINESS SUMMARY




Notes of Explanation:
  1. TBS = "To Be Suggested"
  2. Seller's Adjusted Profit

The Seller's Adjusted Profit is a calculation showing the cash flow generated by the Business for the most recent tax year, unless otherwise indicated, by adding back to the net profit those costs that are discretionary to the Seller. These costs could include the owner's salary and benefits, interest paid on the seller's notes/debts that are not assumed by the buyer, non-cash expenses such as depreciation (in appropriate situations) and amortization, and certain non-recurring or unusual expenses. Details of the Adjusted Profit calculations are available in each presentation package and in our files.

"An Economic Basket"

Another way of viewing the Seller's Adjusted Profit is as the historic economic basket of benefits available to the new owner so he can:

  1. Pay himself an appropriate wage commensurate with the skill required to manage the business.
  2. Service any debt incurred to purchase the business.
  3. Receive a reasonable rate of return on the down payment invested. (The appropriate rate of return depends on market conditions and the size of the business. For smaller transactions the rate of return on investment is not usually a significant factor in the valuation.