EHS Consulting Firm (SOLD) - NEO Business Advisors
Case Study of Recent Transaction

Environmental, Health and Safety Consulting Firm​

SOLD - NEO Business Advisors represented the seller of a long established Environmental, Health and Safety Consulting Firm with over 30 years of industry expertise and excellent client relationships throughout Northeast Ohio.

Asking Price:  $285,000

Gross Revenue: $450,065

Cash Flow:  $93,609

FF&E: Nominal     Included?  Yes

Inventory:  N/A     Included?  Yes

Real Estate:  Leased

Building Size:  4,500 SF 

Employees:  10 Employees (4 FT and 6 Contractors)

Location:  Ohio

Environmental Health and Safety Consulting Firm Photo 1
Some Details of the Transaction Remain Confidential

Detailed Information

Founded in 1990, the owner was seeking a strategic buyer or partner to absorb the business and was willing to facilitate a smooth transition. The company had complete service offerings for OSHA Compliance, EPA Compliance, Site Remediation, Phase I/II Assessments, Safety Programs, Air/Water/Waste Consulting, and Employee Training. The business focused on long term beneficial relationships with clients to assess, prevent, and mitigate regulatory shortfalls. Primary industries included manufacturers, lending institutions, and legal firms as expert technical support.

COVID-19 Impact Statement: The business had been operating as an Essential Business throughout COVID-19. They had not laid off any employees and work volume had remained relatively consistent with pre-COVID levels.

Revenue by Year:

2020 Revenue $ 450,065

2019 Revenue $ 470,201

2018 Revenue $ 559,831

Seller’s Discretionary Earnings (SDE) by Year:

2020 SDE $ 117,904

2019 SDE $ 59,844

2018 SDE $ 88,253

3 Year Average SDE $ 93,609

Furniture, Fixtures, and Equipment (FF&E): FF&E was nominal and included in the asking price including a work van, sampling equipment, tools, computers, desks, chairs, file cabinets and various other office furniture and equipment.

Inventory: N/A

Environmental Health and Safety Consulting Firm Photo 2
Environmental Health and Safety Consulting Firm Photo 3

Real Estate: The real estate is leased by the Seller for $1,100/month on a month to month lease for 4,500 SF (3,000 SF of office and 1,500 SF of garage and storage space). The lease is transferrable and could be renewed by a buyer. The business could be relocated if desired at the expiration of the lease agreement. The owner believes the location is strategic and would be beneficial for a buyer to maintain as it provides a local presence that has helped the business in establishing client relationships and retaining experienced employees.

Growth and Expansion: The owner is confident a new owner could grow the business with the existing customers as well as add new customers. The business is an excellent strategic acquisition opportunity for someone already in the industry to acquire an established book of business with long standing customer relationships or to gain a new territory. A strategic buyer may gain additional service offerings for their customers that the seller specializes in while offering additional services to the seller’s customers that the seller doesn’t currently offer through cross-selling. The seller has developed and begun implementing a strategic marketing plan and believes a buyer could grow the business by hiring a dedicated salesperson as well as utilizing digital advertising to find new customers.

Support/Training: Owner is willing to provide a reasonable period of support and training to ensure a smooth transition of employees, knowledge, and client relationships. The owner understands the client relationships are vital to the business value and wants to ensure the clients are transitioned well.

Reason for Selling: Owner is selling to retire.

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