Profitable Clinical Lab with Insurance Contracts


lab scientists
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Asking Price: $900,000

Cash Flow: $180,000

Gross Revenue: $480,000



Inventory: N/A

Established: N/A

Profitable Clinical Lab with Insurance Contracts

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Business Description

Great Growth Potential, Only Independent Lab in the CIty, In-Network Contracts

This is a 38-year old, CLIA accredited, medium-complexity, independent reference lab run by a single owner who has worked in this industry for more than 40+years now and is ready to retire. This is the only independent reference lab in this University Town in the Rocky Mountain region. It holds major insurance contracts, including Cigna (the most prevalent insurance in the state), Blue Cross, and Aetna (some groups), and Medicare.

The Lab does Blood and urine chemistry, drug screening and breath alcohol analysis. It is well-known in the community by reputation and service. It also has contracts with the local University, City, and school district among others and has maintained a fairly stable revenue over the last few years. The revenue and Discretionary Earnings in 2018 were $480K and $180K respectively.

The lab offers a great opportunity for a more ambitious buyer for growth and expansion. The buyer can build on the foundation built by the owner that include a turnkey lab, major insurance contracts that are hard to get for newer labs, long-term relationship with the community and contracts with local institutions. Additionally, it is the only independent reference lab in this city. The new owner can make the Lab high-complexity lab and offer more services, acquire more clients by marketing and serve a larger geographic area.

ABX Micros 60 for hematology
Piccolo Point of Care Machine
2 DCA Vantages for HGA1c
Clinitek Urine Analyzer
Two Roche Coaguchek meters
LIS system
Computers, printers, software, microscopes, an incubator, autoclave, etc.

Very well-established lab with a great reputation
Performs work for the University, City and County
In-network with some of the largest Private Payors
Only independent reference lab in the city
Profitable without any marketing
Great scope for expansion with new services and marketing

- Gross Revenue: $480K
- Seller’s Discretionary Earnings (SDE): $180K
- In-Network Contracts: Cigna, Blue Cross, Aetna (some groups), Medicare
- Asking Price: $900K (Reasonable multiple of SDE plus a premium for in-network contracts which are impossible to get into for new small labs)

Detailed Information

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(from currently available funds)
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Yatin Thakore

Business Listed By:
Yatin Thakore

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Memberships & Certifications:
Indicates membership in the International Business Brokers Association (IBBA). The IBBA is the only certifying organization for Business Brokers and Intermediaries who assists people in buying or selling a business. Certified Business Intermediary (CBI) is a professional certification awarded to Business Brokers and Intermediaries that have achieved stringent requirements. CBI's work by an ethical code of conduct when working with business owners and buyers.

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