Debt Free Running Lab with Medicare, NY Medicaids, HMOs, NY, CA Licenses
This 7-year old reference lab is licensed to process Clinical and Forensic Toxicology samples, Endocrinology samples, and other routine clinical chemistry samples. It also serves as a reference lab for other independent labs within the area. Its Owner/ President is also the Medical Director of the Lab. Having experienced running the laboratory as an owner, he has recently decided to focus more time on pursuing some of his academic pursuits, and hence recently decided to sell his lab. He is an academician and an existing lab or someone with lab experience with a built-in business can do a lot better with the turn-key platform that this lab offers. He is willing to help the buyer after the sale if needed so that the lab sees a seamless transition.
The lab comes debt-free with all the instrumentation and some inventory estimated at over $600K.
The Assets include:
- Agilent LC/MS (6410 Triple Quad) (Jan 2015)
- Nitrogen Generator (July, 2018)
- Carolina Liquid Chemistry CLC-480 Analyzer (Jan, 2018)
- Eppendorf Master Cycler Pro S (May, 2013)
- CGM Labdaq LIS (Jan, 2020)
The lab occupies 2,000 sq ft and is in a medical office building. There is space available to expand within the facility if the buyer wants more space. Alternatively, the buyer can move the lab anywhere in the NY state.
The Lab has had about $250K of revenue in 2019 and after a down-year of 2020 in the pandemic, it is expected to get a similar revenue this year. But this revenue is not guaranteed and the lab is not promising any clients or revenues to the buyer.
The lab is strictly being sold on:
• Its NY, CA licenses
• Hard to get NY Medicaids and several HMO contracts
• Turn-key running lab with high complexity status, and debt-free equipment for toxicology, endocrinology, general chemistry, etc.
The owner will help in the transition.
The asking price of the business is $1.1 M. This is a very fair price considering that it comes with licenses of NY and CA states, two of the largest markets for clinical labs. Unlike most of the other states, these two states do require a separate state license for clinical labs and these are very time-consuming to obtain (NY license can take 18 or more months). Moreover, it also comes with many in-network Medicaid contracts, some of which are closed to new applicants, significant debt-free assets which are working and running, and is turn-key. A buyer with an existing customer base can start running the samples from day one and get the return on investment very quickly.