Laboratory Services

Q3-2017 Laboratory Services Update– The laboratory services market continues to be dominated by two global providers; LabCorp and Quest Diagnostics. With the Centers for Medicare and Medicaid releasing a draft of 2018 reimbursement rates in September, the industry could see as much as a 10% hits to reimbursement rates across the board. While a decrease was anticipated, this outcome is far worse than anyone expected. The ability to leverage size and scale has allowed the industry’s largest providers to capitalize on this news.

Q2-2017 Laboratory Services Update– The laboratory services space continues to see significant consolidation among niche test providers. Strategic acquirers continue to outbid private equity groups for opportunities in the space.

Q1-2017 Laboratory Services Update– Variability in reimbursement has been the story of the laboratory services space throughout much of the last year. This reimbursement unpredictability has pushed the majority of private equity investors to the sidelines as they cautiously await more clarity on the future of the industry.

Q4-2016 Laboratory Services Update– A national increase in chronic and debilitating health conditions such as cancer and diabetes continues to fuel demand for clinical laboratory services from patients. The increase in chronic ailments is most prevalent among geriatric patients, a demographic that is expected to expand 20% over the next decade.

Transaction Advisory – Balance Point Capital Partners, L.P. and 4C Capital have made an investment in IGeneX, Inc. IGeneX is a CLIA certified reference laboratory providing molecular and immunological testing services for Lyme and associated tick-borne diseases to private practice physicians, hospitals, and other clinical reference laboratories worldwide.

Conference: Attended – 2015 Executive War College, May 5-6 2015, New Orleans, Louisiana.

Transaction Advisory – Willow Laboratories announced today that it has been acquired by Ampersand Capital Partners. Willow is one of the country’s leading clinical and forensic toxicology laboratories providing urine, hair and saliva testing services to a wide range of healthcare providers including treatment centers, physician practices and other laboratories.

Transaction Advisory – Blue Sky Biotech, Inc. has completed a recapitalization with Boston-based private equity firm Ampersand Ventures. Blue Sky Biotech, based in Massachusetts, is a Contract Research Organization (CRO).

  • “Provident listened to our story, confirmed that our business was valuable and made us feel like this was the only transaction important to them.”

  • “A lot of investment bankers were interviewed, Provident was chosen. Provident delivered. My clients could not be happier.”

  • “Provident’s depth of experience and practical business savvy was demonstrated in their ability to cut through what sometimes looked like impasse.”

  • “After working with Provident on several transactions, it is evident that their extensive industry knowledge and deal expertise prove to be invaluable to their clients.”

  • “We would not have been successful navigating the process without Provident’s hard work and active participation. They exceeded our expectations and we would highly recommend them to any health care company seeking a knowledgeable and engaged investment banking firm.”

  • “While the decision to sell our business was a difficult one, Provident vigilantly represented and protected our best interests throughout the transaction.  Provident was the right choice for Cascade and I would recommend their services to anyone.”

  • ”I have a tremendous amount of appreciation and gratitude to the Provident team for their hard work and diligence throughout this process. Each and every member of the Provident team is excellent at their jobs and it has been a pleasure working with such a professional team. Provident has provided outstanding guidance and counsel, and this deal could never have gotten done without Provident’s leadership.”