Modern, Profitable Cannabis Lab in Midwest - Strong Growth Potential
Business Description
[Great Margins – Strong Growth Potential – Competent Staff]
This Midwest laboratory is a state-certified and ISO 17025-accredited analytical lab specializing in comprehensive cannabis testing services. Founded by a team of seasoned pharmaceutical and medical device professionals, the lab leverages decades of expertise in controlled substance analysis to deliver compliant and defensible results. Notably, it was the first cannabis testing lab approved in the state.
The lab serves licensed cultivators and manufacturers throughout the state, offering a full range of services including potency profiling, contaminant screening, and quality assurance testing. Utilizing FDA-aligned systems and advanced instrumentation, the lab plays a critical role in ensuring product safety and regulatory compliance.
Advanced Laboratory Infrastructure
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The lab is equipped with cutting-edge analytical instrumentation, such as HPLC, UHPLC-MS/MS, headspace gas chromatography, and real-time PCR systems, and it follows FDA pharmaceutical standards for method validation. This robust infrastructure supports scalability, repeatability, and audit readiness across all testing disciplines.
Experienced and Dedicated Team
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The lab boasts an efficient operational and management staff, allowing the three owners to maintain minimal involvement in daily operations.
Positioned for Scalable Growth
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Strategically situated at the intersection of life sciences and the expanding medical cannabis market, the lab is well-positioned to scale its operations. It can meet growing demand from cultivators, manufacturers, and regulators focused on product quality and patient safety. The 3,340 sq. ft. facility has room for expansion into pharmaceutical or environmental testing.
While some state cannabis labs are struggling or closing, this lab is uniquely positioned to capture a larger market share, leveraging its pharmaceutical-grade infrastructure and trusted reputation to expand within its own and into the neighboring states.
Reason for Sale
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The three owners, who have extensive experience in the lab industry, are looking to exit the business to focus on other ventures.
Financial Highlights
-----------------------
Projected Revenue: $1.13M
EBITDA: $300K
Gross Margins: Approximately 73–77%
EBITDA Margins: Close to 25%
Assets: All lab equipment is fully paid off
The asking price represents a reasonable EBITDA multiple, reflecting the lab’s strong market position and growth potential in a thriving industry.
This Midwest laboratory is a state-certified and ISO 17025-accredited analytical lab specializing in comprehensive cannabis testing services. Founded by a team of seasoned pharmaceutical and medical device professionals, the lab leverages decades of expertise in controlled substance analysis to deliver compliant and defensible results. Notably, it was the first cannabis testing lab approved in the state.
The lab serves licensed cultivators and manufacturers throughout the state, offering a full range of services including potency profiling, contaminant screening, and quality assurance testing. Utilizing FDA-aligned systems and advanced instrumentation, the lab plays a critical role in ensuring product safety and regulatory compliance.
Advanced Laboratory Infrastructure
---------------------------------------
The lab is equipped with cutting-edge analytical instrumentation, such as HPLC, UHPLC-MS/MS, headspace gas chromatography, and real-time PCR systems, and it follows FDA pharmaceutical standards for method validation. This robust infrastructure supports scalability, repeatability, and audit readiness across all testing disciplines.
Experienced and Dedicated Team
-------------------------------------
The lab boasts an efficient operational and management staff, allowing the three owners to maintain minimal involvement in daily operations.
Positioned for Scalable Growth
-------------------------------------
Strategically situated at the intersection of life sciences and the expanding medical cannabis market, the lab is well-positioned to scale its operations. It can meet growing demand from cultivators, manufacturers, and regulators focused on product quality and patient safety. The 3,340 sq. ft. facility has room for expansion into pharmaceutical or environmental testing.
While some state cannabis labs are struggling or closing, this lab is uniquely positioned to capture a larger market share, leveraging its pharmaceutical-grade infrastructure and trusted reputation to expand within its own and into the neighboring states.
Reason for Sale
-----------------
The three owners, who have extensive experience in the lab industry, are looking to exit the business to focus on other ventures.
Financial Highlights
-----------------------
Projected Revenue: $1.13M
EBITDA: $300K
Gross Margins: Approximately 73–77%
EBITDA Margins: Close to 25%
Assets: All lab equipment is fully paid off
The asking price represents a reasonable EBITDA multiple, reflecting the lab’s strong market position and growth potential in a thriving industry.
About the Business
Listing Info
- ID
- 2365155
- Listing Views
- 299
Listing ID: 2365155 The information on this listing has been provided by either the seller or a business broker representing the seller. BizQuest has no interest or stake in the sale of this business and has not verified any of the information and assumes no responsibility for its accuracy, veracity, or completeness. See our full Terms of Use. Learn how to avoid scams.
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