For two decades, popular wisdom says “buy,’ but several entrepreneurs succeeded by building a brand new clinical lab company
Over the past 15 years, there have been few examples of pathologists and medical laboratory executives willing to start up a new clinical laboratory company from scratch. The popular wisdom says that this is a next-to-impossible task. The same popular wisdom says that buying an existing clinical laboratory company is the best way for entrepreneurs and new investors to enter the clinical lab testing marketplace.
In part, this explains why, since the mid-1990s, there are relatively few examples of a brand new lab company entering market with the goal of serving office-based physicians. It also explains why the majority of lab entrepreneurs and investors follow the business strategy of acquiring an existing laboratory company as their entré into the market. They then use this acquired lab company as the platform to grow. (more…)