What is my lab worth? That’s the question every laboratory seller wants to know!
Despite an economy in recession, laboratory buyers remain bullish on the financial fortunes of clinical laboratories and anatomic pathology companies. The lack of publicly-announced acquisitions during 2009 masks the fact that lots of conversations are happening between lab buyers and lab owners.
Why such interest? On the buyer side, private equity companies and buyers are convinced that the demographics of the aging population translates into a robust demand for laboratory testing during the next decade. Further, they are enthusiastic about the potential for the steady introduction of powerful new diagnostic assays to further drive up lab test volume. They understand why patients and physicians will seek the benefits of higher sensitivity and improved accuracy from these new assays.
On the seller side, these same demographics forces are at work in equally powerful ways. For example, many pathologists with ownership stakes in clinical laboratories or pathology labs are hitting retirement age. The need to cash out these retiring partners encourages these clinical labs and pathology groups to entertain conversations with potential lab buyers and with sources of business capital.
Further evidence of this widespread interest among laboratory buyers and laboratory sellers was seen at the 15th Annual Executive War College in New Orleans last month. Attendance at the special extended session titled “Merger & Acquisitions of Pathology and Clinical Laboratories” was standing room only! This optimism was matched by the speakers, who acknowledged that the peak for laboratory valuations and sales prices seen during 2007 was considerably higher than warranted in today’s economy-but that the lab testing business remains a financially buoyant sector.
To update laboratory executives, lab sellers, and potential buyers about the current “state of the laboratory M&A marketplace,” The Dark Report has invited two veteran laboratory deal makers to share their insights at an upcoming audio conference next week. Both Christopher Jahnle, Managing Director at Haverford Healthcare Advisors, and Doug Brown, Managing Director for the Healthcare Group at Lazard, have participated in some of the most important laboratory acquisitions on either the sell or the buy side in recent years. Both believe the laboratory market is primed for new transactions.
You are invited to join in and listen to this valuable session. The audio conference is titled “Titled “Laboratory and Pathology M&A Activity: How Recent Sales and The Current Economy Could Impact the Value of Your Lab.” It will take place on Tuesday, June 16, 2009 at 1:00 PM EDT (and 12 PM CDT; 11 AM MDT; 10 PM PDT). Moderator is Richard Cooper, Esq., who heads the National Healthcare Practice Group at McDonald Hopkins . He also has participated in some of the most significant laboratory sales or acquisitions and has first-hand perspectives on the Laboratory M&A marketplace.
Topics will include:
• Complete details of the most important lab transactions in the past 12 months.
• What motivates laboratory buyers and acquirers in today’s economy.
• Insider analysis of top-priced lab deals and what drove the higher pricing.
• Best sources of capital for laboratory acquisition and expansion.
• Why there is strong demand for hospital outreach lab companies.
• Three things to maximize the value and sales price of your laboratory.
• Secrets of auditing your lab and fixing problems to add value, raise the sales price, and increase cash flow.
• Four focus areas for sellers that support a strong sales price and improve short-term profits before the sale.
There’s even the opportunity to ask your own questions and explore the best methods for reducing costs in your lab. All this for one low flat fee of only $245 per dial-in site. So don’t wait! Reserve your “seat” today for this very special conference.
THE DARK REPORT AUDIO CONFERENCE AT A GLANCE
DATE: Tuesday June 16, 2009
TIME: 1 p.m. EDT; 12 p.m. CDT; 11 a.m. MDT; 10 a.m. PDT
PLACE: Your telephone or speakerphone
COST: $245 per dial-in site (unlimited attendance per site)
TO REGISTER: Click here or call 1-800-560-6363 toll-free
HOW TO REGISTER:
2. Call toll free: 800-560-6363
Registrations accepted until Tuesday, June 16, 2009, noon EDT.
Cancellations before 5:00 p.m. EST on Friday, June 12, 2009 may receive a full refund less a $25 service charge.
Your audio conference registration includes:
• A site license to attend the conference (invite as many people as you can fit around your speakerphone at no extra charge)
• Downloadable PowerPoint presentations from our speakers
• A full transcript emailed to you soon after the conference
•The opportunity to connect directly with our speakers during the audience Q&A session