Prices of Clinical Pathology Laboratories Are Rising Due to Buyer Demand

Conference on May 5 about clinical laboratory and pathology mergers and acquisitions

For owners and sellers of clinical laboratories and anatomic pathology groups in the United States, the past six months have been rosy times. That’s because buyers have stepped up and paid strong prices for the medical laboratory companies and pathology testing firms that came to market during this time.

Experts predict that merger and acquisition (M&A) activity in the clinical laboratory industry will continue to be robust. Several factors reinforce this optimistic prediction.


Laboratory/Pathology Mergers & Acquisitions: Buyers Still Quite Interested

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.