How much does a Workplace Drug Testing Service cost to buy?

A typical Workplace Drug Testing Service sells for 3x to 5x seller's discretionary earnings. With estimated SDE of $173K, expect to pay roughly $518K to $863K before adjustments for assets, debt, growth, and local market quality.

How much does it cost to start a Workplace Drug Testing Service?

Startup costs range from $30K to $175K depending on location, equipment, and scale.

Service

Workplace Drug Testing Service

Q: What are the profit margins for a Workplace Drug Testing Service?

The average profit margin for a Workplace Drug Testing Service is around 23%. Key costs include collectors, lab fees, rent, software, insurance, and sales. Grand View Research estimated the U.S. drug screening market at about $2.54B in 2023, while the U.S. drug-of-abuse testing services market was roughly $992.6M in 2024, showing how large the employer and safety-testing niche already is.

Compliance testing for employers who cannot afford bad hires or failed audits

Bottom line

Worth studying, but do not buy without strong local proof.

Workplace drug testing companies provide pre-employment, random, post-accident, and DOT-compliant testing for employers. Demand is driven less by consumer taste and more by insurance, safety, regulation, and HR policy — which makes it a quietly durable boring business.

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Acquisition score

Fair

Avg Revenue

$750K

Profit Margin

23%

Acquisition Multiple

3x - 5x

Startup Cost

$30K - $175K

How It Works

The operator contracts with employers, staffing firms, schools, and transportation fleets to run scheduled and on-demand tests. Revenue comes from urine, saliva, hair, and instant tests, plus consortium management, mobile collections, and occupational health add-ons. The best firms win on turnaround speed, chain-of-custody reliability, and account retention.

Revenue Range

Low End

$200K

Typical

$750K

High End

$2.0M

Real Acquisitions in This Category

SBA 7(a) change-of-ownership loans · NAICS 621999 · All Other Miscellaneous Ambulatory Health Care Services

Deals tracked

3 in last 24 mo

Median loan

$330K

$250K–$646K p25/p75

Implied deal size

$388K

median · ~85% LTV

Charge-off rate

—

not enough resolved loans

Deal Size Distribution

<$150K

$150K–500K

$500K–1M

$1M–2M

>$2M

Financing Profile

Median rate

8.50%

33% fixed · last 24 mo

Median term

120 mo

standard 10-yr

Collateralized

of loans secured

Median jobs

supported per deal

Top lenders in this space

Live Oak Banking Company2

Old National Bank2

Renasant Bank1

The Bancorp Bank National Association1

Wells Fargo Bank National Association1

Where deals happen

MN3

WI2

CA2

AL1

MI1

TX1

WA1

AZ1

NC1

Recent Comparable Deals

Closed	State	Loan	Implied deal	Jobs	Franchise
Dec 2024	WI	$150K	$177K	18	—
Dec 2024	WI	$712K	$838K	18	—
Jun 2024	MI	$852K	$1.0M	55	—
Apr 2024	MN	$250K	$294K	82	—
Apr 2024	MN	$1.4M	$1.6M	82	—
Jun 2023	AZ	$435K	$512K	12	—
Feb 2023	AL	$295K	$347K	10	—
Sep 2022	WA	$646K	$760K	27	—
Sep 2021	MN	$59K	$69K	2	Stroller Strides
Jun 2021	CA	$250K	$294K	35	—

Volume rank #338/544Deal-size rank #502/544p90 loan: $712KData as of Mar 2026

Source: SBA 7(a) FOIA dataset, filtered to acquisitions (loans where business age is "Change of Ownership"). Implied deal size assumes an 85% loan-to-purchase ratio, a common SBA change-of-ownership structure. Charge-off rate shown only when 10+ loans have resolved (paid in full or charged off). Interest rates reflect last 24 months only. Actual deal values vary with equity injections, seller financing, and working capital terms.

Pros

+Compliance-driven recurring demand from employer accounts
+High trust and operational discipline create retention
+Mobile collections and after-hours testing support premium pricing
+Cross-sells naturally into background screening and occupational health

Cons

-Documentation errors can create liability
-Account concentration can hurt if one big employer leaves
-Some growth depends on local labor-market conditions
-Clinical compliance and collector training matter

Best For

Operators who like B2B compliance services, account management, and process discipline

Operating Costs

Key costs include collectors, lab fees, rent, software, insurance, and sales. Grand View Research estimated the U.S. drug screening market at about $2.54B in 2023, while the U.S. drug-of-abuse testing services market was roughly $992.6M in 2024, showing how large the employer and safety-testing niche already is.

SBA Financing Estimator

Adjust the deal — see if it cash flows after debt service

$-5438/mo

after debt service

Deal price — $1.9M

Range: $1.9M (3×) to $4.5M (5×+)

Down payment — 15% ($282K)

SBA minimum equity injection is 10% for change-of-ownership

Interest rate — 8.50%

SBA median for this category: 8.5%

Loan term — 10 years (120 mo)

SBA median for this category: 120 months

Down payment

$282K

15% equity injection

Loan amount

$1.6M

85% SBA-financed

Monthly payment

$20K/mo

$780K total interest

Monthly profit

$14K/mo

at 23% margin

Monthly cash flow after debt service

$-5438/mo

Margin does not cover debt service at these terms. Lower the deal price, increase the down payment, or extend the loan term.

Estimates only. Excludes owner compensation, capex, working capital draws, and taxes. Margin assumes average occupancy and volume. Actual SBA terms vary by lender and borrower profile.