What's my lab worth???

CoolHandLuke

CoolHandLuke

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Quite a number of years ago some guy from a holding company (maybe DSG-can't recall) called and asked about buying my lab. His interest vanished when he learned that without me there was no lab. He didn't really care about equipment, employees or even my account base. It had to be a package, but I would essentially be an employee, so no go. Years later, I get that.

If they are trying to buy out competition, fine, make it worth your while!
you mean to tell me your minions are exploitable labour?


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K

Kaiser7100

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A local lab to me has recently showed interest in buying me out and having me manage their lab. I am waiting for their offer but really don't even know the ballpark of what it's worth. I am a 3 person C&B lab doing about $38,000 per month. I'm having a hard time finding out a solid number or even a formula to figure out a labs value. Any help would be appreciated.

All depends on your equipment. In our line of work Drs can disappear as soon as your gone.
 
Flipperlady

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A local lab to me has recently showed interest in buying me out and having me manage their lab. I am waiting for their offer but really don't even know the ballpark of what it's worth. I am a 3 person C&B lab doing about $38,000 per month. I'm having a hard time finding out a solid number or even a formula to figure out a labs value. Any help would be appreciated.

I'm no expert on valuation, but if you are close to retirement age I would average the last 5 years of net and offer for one year of that (say $400k). To be fair i would speak with the employees first as they may not want to stay for new owner , and or they may want to buy the lab themselves. If it were me i wouldn't want to stay on and manage more than about 6 months as you won't be the boss anymore and it makes things weird. I'd take the money and run fast.

PS... If you aren't retirement age, I'd pass as you would have to start over elsewhere and as long as you love what you do i would stay put.
 
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GG - J

GG - J

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Rule of thumb
nationally the average business sells for around 0.6 times its annual revenue

Does this ratio hold true in our industry?

Recently was told 20% of gross
1,000,000 gross = 200 k for lab

Quick read to evaluate your business
 
Jason D

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Those numbers are pretty much worthless because labs vary so dramatically in size systems and profitability.
the price depends upon the buyer...no large group with buy a 1 million revenue lab at any price, but a small group practice or a technician looking to jumpstart an entrepreneurial move might be happy to...
 
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