FDA Compliance Services – $558K Profit – $1.9M Asking – 3.4x Multiple

Listing Type (?): Solid!

📸 Snapshot:

Digital services business focused on FDA compliance for food, medical, drug, and cosmetic companies. Services include registrations, agent representation, and ongoing compliance renewals. Over 50% of revenue is recurring, and margins are excellent: 70%+ net profit on $789K revenue. The overseas team handles technical work for ~7.5% of revenue. Owners have intentionally limited growth, leaving real room for expansion.

✅ The Good:

• Sticky Niche: Regulatory compliance is non-optional for clients—recurring renewals make revenue durable.

• Very High Margins: 70%+ net profit, fully remote model, low overhead.

• Low Working Capital: Little to no inventory or major capital tied up in operations.

• Offshore Team in Place: Contracted team handles fulfillment, making it scalable with minimal staffing.

• Owner Transition: Majority owner offering 3-month transition support.

⚠️ Watch Out:

• Minority Owners Stay Involved: 25% minority owners will remain active. Buyer will need to fully understand their roles, responsibilities, and long-term plans.

• Client Acquisition Model: Unclear how leads are generated or whether any sales effort exists.

• Key Person Risk: Specialized niche — buyer must be ready to manage regulatory nuances.

• Growth Story Undersold: Current owners attribute slow growth to personal preference — buyer will need to verify the real opportunity.

💡 Bottom Line:
This is a solid digital services business with sticky recurring revenue, very strong margins, and an efficient operational structure. The minority ownership dynamic should be closely understood upfront, but for the right buyer comfortable with regulatory work, this has strong cash flow and real expansion potential.

[View Listing]