Selling a Lab

[pdent]

Has anyone had any experience buying or selling a lab? It's time to retire and I don't know if I should look for a broker or try to sell on my own. Appreciate any advice.

 

[Jason D]

Has anyone had any experience buying or selling a lab? It's time to retire and I don't know if I should look for a broker or try to sell on my own. Appreciate any advice.

Learn about the numbers, it depends dramatically on the size and location of your lab and the technologies you are equipped with.

Feel free to shoot me an email if you would like some perspective about your specific situation. I do a lot of lab assessments and valuations, as well as a fair amount of consulting for venture capital.

[email protected]

 

[BobCDT]

Where an how big is your lab?
Generally speaking, small labs are not worth much as the owner operator is THE business.

 

[pdent]

Where an how big is your lab?
Generally speaking, small labs are not worth much as the owner operator is THE business.

We are in South Florida and I have 2 employees who are well trained. The buyer would basically have to set teeth and answer phones. We do about 350-380k

 

[BobCDT]

If you are willing to share the (your) income it would help determine the value. Not sure you want thin on line in a public forum.

 

[pdent]

Learn about the numbers, it depends dramatically on the size and location of your lab and the technologies you are equipped with.

Feel free to shoot me an email if you would like some perspective about your specific situation. I do a lot of lab assessments and valuations, as well as a fair amount of consulting for venture capital.

[email protected]

If you are willing to share the (your) income it would help determine the value. Not sure you want thin on line in a public forum.

I don't have any problem sharing. The net is 120k.

 

[BobCDT]

Best bet, call some larger labs in your area and see if they are interested. I think your lab would make sense to many of them.

 

[Affinity]

Why not create some profit-sharing between the 2 employees and let them run it. They have incentive and you continue to get a paycheck as a percentage owner.. Might work out better than selling if you run the numbers. If people want used equipment, they can buy it on ebay.. anyone with money to buy is looking for accounts.. IMO

 

[dentcre]

interesting thread,, I will be selling my lab in about 3 years. , includes building,all milling equipped , state of the art 2 person Lab. steady 360 k potential to double that.

I like the idea of offering it to a larger lab.

anyone here sold to larger labs before?

 

[CatamountRob]

interesting thread,, I will be selling my lab in about 3 years. , includes building,all milling equipped , state of the art 2 person Lab. steady 360 k potential to double that.

I like the idea of offering it to a larger lab.

anyone here sold to larger labs before?

This guy maybe?

Best bet, call some larger labs in your area and see if they are interested. I think your lab would make sense to many of them.

 

[Gru]

In the very distant past I got a call from a lab holding group guy. I knew he wasn't going to be interested in my setup, but I picked his brain a moment. He told me they don't have any real interest in equipment one way or the other, buildings, maybe, but were really looking at account base, accounts payable, etc. He said very few small labs are a business- most are just a job for the people working there and have no market value. He said if you can't walk away and it keeps on operating without you, it's not the kind of business they are looking for.

 

[BobCDT]

In the very distant past I got a call from a lab holding group guy. I knew he wasn't going to be interested in my setup, but I picked his brain a moment. He told me they don't have any real interest in equipment one way or the other, buildings, maybe, but were really looking at account base, accounts payable, etc. He said very few small labs are a business- most are just a job for the people working there and have no market value. He said if you can't walk away and it keeps on operating without you, it's not the kind of business they are looking for.

Generally speaking you are correct. Small labs doing under a couple of milllion dollars (or even under $4m) are more about the owner and the owners relashonships with customers. This tight relashonship is not easily transferable, resulting in a lack of interest buy most companies buying labs. In addition, the valuation is based on a multiple of the profits, free cash or EBITA. Generally, things like equipment never hit the equation. Real estate, a different story.

 

[RJS8669]

Just an FYI - Jimmy Stegall (formerly of Sherer Dental in SC) just became president of a new division of DSG. He is actively seeking labs with sales of less than $1M. Its an interesting concept. Call DSG and have them patch you through. Doesn't cost anything to listen....

 

[rkm rdt]

Just an FYI - Jimmy Stegall (formerly of Sherer Dental in SC) just became president of a new division of DSG. He is actively seeking labs with sales of less than $1M. Its an interesting concept. Call DSG and have them patch you through. Doesn't cost anything to listen....

Guess that counts me out...

 

[Kevan]

Where an how big is your lab?
Generally speaking, small labs are not worth much as the owner operator is THE business.

What about selling a small lab with the main technician? Generates 500k+ and the tech is only mid 50's. Its still growing as well. He does it mostly on his own with a plaster guy and front desk. and thank you.

 

[CatamountRob]

What about selling a small lab with the main technician? Generates 500k+ and the tech is only mid 50's. Its still growing as well. He does it mostly on his own with a plaster guy and front desk. and thank you.

I’m pretty sure you can’t sell technicians anymore?

Prolly just as well too, cause my wife would have me on the freakin’ discount rack.

 

[rc75]

beautiful pic @CatamountRob

 

[rkm rdt]

I’m pretty sure you can’t sell technicians anymore?

Prolly just as well too, cause my wife would have me on the freakin’ discount rack.

Worried she would trade you in for a newer model?

 

[CoolHandLuke]

Worried she would trade you in for a newer model?

no, worried when his wife sells him she only gets what he said he paid and not what it actually cost.

 

[TheLabGuy]

What about selling a small lab with the main technician? Generates 500k+ and the tech is only mid 50's. Its still growing as well. He does it mostly on his own with a plaster guy and front desk. and thank you.

That's nice numbers for just mainly one tech. Does he sleep?...ever?