Description About This Posting: Clinical Lab Management Services
Growing business, has a long history of servicing the Laboratory industry. It was established its laboratory supply business back in 1989 and in 1996, it started its Laboratory Management Services division. It was one of the early entrants in this field and has established a solid reputation for quality and expert services in this field. It has a loyal base of clients today, providing solid, recurring revenue stream. The Lab management services has high gross and EBITDA margins.
The Company's overall revenues in the current year is projected to be around $3M this year, up from about $2.4M last year. Of this, Lab Management services is projected to bring in $2.2M in revenue and about $602K of EBITDA, whereas the Lab Distribution side of the business will contribute $800K and only about $32K of EBITDA. The Company signed up a new client for its management services in June, 2018 which will bring in $125K or revenue this year and $300K of additional revenue in future years.
The Company's Laboratory Management division has high margins (66% gross and 27% EBITDA) whereas the Distribution division has low margins (31% gross and 4% EBITDA). In the past, the Distribution has taken away some of the time and energy from growing the Management business. The Company has decided to focus much more on the Management business and that is beginning to bear fruit now as the Lab Management's projected revenue for 2018 will be $2.2 M, up from $1.6 M last year, and forecasts a revenue of $2.8M in 2019 and $3.6M in 2020. This entails net gain of only about two clients a year.
The seller is open to selling both the divisions or just the Management side of the business, depending on what the buyer would like. If the seller were to keep the Company without a sale, he would be divesting the Distribution side and focus exclusively on the Lab Management side. The seller also has a team in place that is experienced in this field.
Company was founded in 1989 to distribute laboratory products and particularly products to clinical chemistry laboratories. This Laboratory Products group provides the labs with most commonly used reagents and equipment. It supplies products from 50 different vendors. The products cover:
* Clinical Chemistry
* Rapid Tests
* Consumables and Other Laboratory Supplies
In 1996, Business branched out and created Laboratory Management Division to provide turn-key services to physician office laboratories (POLs). These services took the headache out of running the physician's office labs for the Physicians Group Practices. Compliance Assistance for one fee. It is a win-win for both, Physicians Office Group and the seller's company.
Business provides growth in a niche area and an area where it enjoys high margins, limited competition, and a large potential market. Although the company is located in Southern California, it could be run from anywhere. The company is organized as a Subchapter S corporation and has 10 full-time employees out of which two are non-working family members. The business is currently housed in a building owned by the seller and occupies 6,450 square feet of warehouse and office space. The current rent is about $5,000 / month. This year, the management business will do about $2.2 M in revenue, compared to $1.6M last year and the EBITDA margin are increasing to 27% from 19% last year. With additional growth, they will continue to go higher. The Distribution business, which brings down the overall margins can be easily divested by the management and is up to the buyer whether they want to keep it or carve it out.
* High Margins, and High Growth (strong interest currently in Drug Testing and Genetic Testing Labs)
* Long-term contracts insure recording revenue and most of the clients continue renewing these contracts (they auto renew), as there is no reason to change if the service is good and they are making money
* Model very scalable across the country
* Can be relocated one can run it from anywhere
* Deep, long-term experience in the field
* Large Potential Market of over 100,000 POLs, and particularly the subset of CLIA-waived Physician Office Labs (POLs), as well as anyone who wants to start a Clinical lab.
* Experienced Management Team
To get more information about this Clinical Lab Management Services business for sale in
Los Angeles County please phone Sasa Milosevic (Broker - BRE License #:01516168) at 310-318-1144 and 310-922-0936 - if you get
voicemail please leave a detailed message - make sure you mention you
saw this posting/ad #247352 on BizBen.com. In addition to phoning
Sasa Milosevic, make sure you email Sasa Milosevic above to get more info about this
Clinical Lab Management Services, to ask any questions or request an appointment to see this
business for sale. Thank you.
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