Return To Opportunities List


Executive Recruitment for Pharmaceuticals, Biotech, & Diagnostic Industries

With a 5-year average profit margin of 50%!



  • Price

  • Revenue

  • Cash Flow

  • Down Payment

  • Multiplier

  • Reason for Sale
    Retirement Planning

  • Profit Margin

  • Employees
    4: 1 Owner, 2 FT Recruiters, 1 PT Office Admin

  • Location
    Bucks County, Pennsylvania

With a 5-year average profit margin of 50%, this executive recruitment firm has extremely low overhead; all employees work remotely! Established in 1996, this team of four has 70 years of combined industry experience; it includes the owner, who handles recruitment, business development, and financial oversight, along with 2 full-time recruiters and one part-time office administrator. Located in the greater Philadelphia region and well-established for nearly 25 years, this business has a solid reputation with nationwide clients.  They specialize in finding the perfect fit for life sciences industry clients, ranging from translational to commercial, and start-up to Fortune 500. Executive and professional level placements include Chief Officers, Vice Presidents, Executive Directors, Senior Managers, Senior Directors, Account Managers, and much more. This company also offers career coaching services for individuals looking to present themselves as the top candidate to employers – coaching includes resume presentation, mock interviews, and compensation negotiations.


Using top-notch PCRecruiter Software, the company has the capability of pulling various reports, posting jobs, receiving candidate inquiries, and accessing their comprehensive database, all 100% remotely. This recruitment team consistently exceeds their clients’ expectations; 70% of their clients have been with them for over 14 years.


Priced at $2,190,000, this company is in a prime position for growth. With proactive business development and an increase in recruiters, the business could boost their revenue tenfold. The need for recruitment of scientists has surged in recent months; pursuing this avenue would also lead to substantial growth.

Business Highlights

  • Year Established: 1996
  • Location:  Bucks County, Pennsylvania
  • Service Area: Nationwide
  • Services: Executive and professional recruitment for life sciences industry, career coaching services
  • Clients: Biotech, pharmaceutical, diagnostics, device, CDMO
  • Average Sale Size: $45,000
  • Reason for Selling: Retirement planning
  • Personnel: 4: 1 Owner, 2 FT Recruiters, 1 PT Office Admin
  • Seller Training Period: 1-2 years
  • Growth Opportunities: Hire more recruiters, proactive business development
  • Current Owner’s Responsibilities: Recruiting, business development, financial oversight
  • Software: PCRecruiter
  • Low Overhead: No office space; all employees work remotely
  • Intangible Assets: Solid reputation, 70 years of combined industry experience, established niche in life sciences

Financial Highlights

  • List Price: $2,190,000


  • 5-Year Average Cash Flow: $523,215
  • 5-Year Average Profit Margin: 50%

Cash Flow Analysis

Description of Financial StatementP&L Statement
Jan-Dec 2020
Tax Return
Tax Return
Tax Return
Tax Return
GROSS SALES$760,028$963,203$993,597$1,330,550$1,174,222
Net Income Shown on Financial Statement$187,158$217,350$112,867$352,160$242,342
Compensation to Owner$193,000$280,000$275,000$270,000$265,000
Other unrelated Salaries$24,100$25,000$25,000$25,000$25,0002 daughters - no need to replace
11% Tax on total W2 Salaries$23,881$33,550$33,000$32,450$31,900
Auto Expense$1,206$1,117$6,255$3,102$2,694100% personal
Auto Insurance$5,400$5,400$5,400$5,400$5,400$450/month
Cleaning Service$2,400$2,400$2,400$2,400$2,40050% personal - $200/month
Cell Phone$3,108$3,108$3,108$3,108$3,108$259/month
Home Phone$2,940$2,940$2,940$2,940$2,940$245/month
Travel$95$13,401$21,948$15,362$16,167100% personal
Meals & Entertainment$3,383$3,842$5,316$5,043$5,259
Replacement Cost$-75,000$-75,000$-75,000$-75,000$-75,000
Rent$11,580$23,760$23,760$23,375$23,100Business can be run remotely
Zoom Expense$15,000$0$0$0$0One-time cost to purchase Zoom info
Computer Consultant Fee$855$0$0$0$0One-time cost to switch to remote system
TOTAL ADDBACKS$212,651$324,064$332,819$319,732$314,934
Seller's Cash Flow = Total Addbacks + Net Income$399,809$541,414$445,686$671,892$557,276
Profit Margin52.60 %56.21 %44.86 %50.50 %47.46 %
  • Profit Margin: 53%


  • Biotech
  • Pharmaceutical
  • Diagnostics

Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement.


  • Executive & Professional Recruitment
  • Career Coaching


  • 1 Owner: Recruiting, executive searches, business development, financial oversight
  • 2 FT Recruiters
    • 1 FT recruiter has been with the company for over 18 years
  • 1 PT Office Manager
    • Has been with the company for over 8 years
    • Will also assist with sourcing
  • All employees are working remote and there does not need to be an office space

Growth Opportunities

  • Hire more recruiters
  • Proactive business development
  • Pursue more recruitment of scientists

Funding Example

The Firm Advisors used a cash flow valuation methodology to determine the purchase price of the business.

Cash flow is the sum of business net income plus any owner perks and any non-onward expenses. Then we prescribe a multiple based on 20 parameter which valuate the health of the business. For this valuation, we used the 5-year average cash flow value making the business price much more favorable to the buyer.

The formula used is as follows:

Cash Flow        x  Prescribed Multiple       =   Fair Market Value


With this information, the computation is as follows:


$523,215            x                4.2                 =         $2,197,503

Funding Example

Purchase Price:



Bank Loan Needed: $


Funding Details


Offer Price: $

% Buyer Cash Down at Closing: $

% Seller Carry Back via Promissory Note: $

year term at a rate of %

% of Purchase Price secured by Buyer and Seller

Total Bank Loan Need: $

% of Purchase Price

Desired Loan Type:

Desired Bank Terms: year term at a rate of %

Total Business Assets, Inventory, and A/R: $

Total Undercollateralized Loan: $

Loan Payments

Monthly Payment to Bank: $
Yearly Payment to Bank: $
Monthly Payment to Seller: $
Yearly Payment to Seller: $
Total Monthly Debt Service: $
Total Yearly Debt Service: $


Fixed Charge Coverage Ratio

The bank will require a minimum ratio of 1.5 to be lendable.

Cash Flow:
5-year average cash flow
Annual Debt Service: $

Buyer's Net Operating Income (NOI)

The amount of money the Buyer will retain as profit.

Cash Flow:
5-year average cash flow
Annual Debt Service: -$

Buyer's Return on Investment (ROI)

The rate of return on the Buyer's down payment.

Down Payment: $
ROI: %


Document Title / Description

This folder is empty.

Access to this Deal Room is restricted

Would you like to access the deal room?

Yes, please

Interested in
this business?

Complete the following information to sign an NDA and see more details!

Already have an account? Log in here.

Click to download NDA form

Print, sign and send to:

210 N 78th St. 2nd Floor
Omaha, NE 68114

Or fax to:

f 402.939.0857

Thinking of Selling?
When selecting an M&A firm, please use the following Scorecard: click here for our M&A Scorecard

The Firm is not a real estate brokerage and therefore the staff will not handle any aspect of the lease, sale or purchase of real estate.