For Sale?

Discussion in 'Dominion Diagnostics' started by anonymous, Jan 22, 2019 at 1:07 PM.

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  1. anonymous

    anonymous Guest

    Looks like Dominion is for sale. Any news on this?
     

  2. anonymous

    anonymous Guest

    I heard they have signed an LOI and are in due diligence with buyer. Not sure who the buyer is. Rumor is price is somewhere in the 7.5-8x EBITDA range. Equity owners wanted out ASAP and may take less to get out. Not sure why as Dominion is a pretty good lab with minimal compliance issues, that is actually turning a legitimate profit. Not like other labs that bill G0482 & G0483 on all sample and inflate revenue.
     
  3. anonymous

    anonymous Guest

    Your source seems a little fishy. 7-8x EBITDA won't happen with a tox lab of their size. Are you sure there wasn't just a meeting with potential buyers? These meetings happen frequently with all tox labs and most non-commercial lab.
     
  4. anonymous

    anonymous Guest

    LOI said 7x-8x EBITDA range subject to Due Diligence. As we all know DD can change a multiple though. The reason the high multiple is the LC/MS/MS codes are mostly Tier 1 and they have about 80% of income in-network. These are the main factors into a high multiple. Even though is is a high multiple, the EBITDA could only be about 15%. so the sale price will be about 1-1.2x revenue/
     
  5. anonymous

    anonymous Guest

    How about my source is the investment bank working with the buyer! You have not idea what you are atalking about.
     
  6. anonymous

    anonymous Guest

    !

    LOL! This sure sounds credible
     
  7. anonymous

    anonymous Guest

    I would give you name of IB but that would out me. The deal is in due diligence and will announce sometime end of Q2 to beginning of Q3. Dominion was looking for add on lab to merge with to make the sale better, but could find no takers and decided to sell on their own. Once bidder came in with credible offer they jumped. More deals like this will follow in 2019 & 2020 as all the low profit labs are squeezed by audits and lower reimbursements. Oh, but what do I know, I am not credible.
     
  8. anonymous

    anonymous Guest

    WHAT? Merge with another lab right before a sale? To increase its worth? That makes no sense. The assimilation and attrition and general logistics would be horrible to a potential buyer. This newly merged company would need to be settled for a buyer to be interested.
    An awful lot of tox labs are meeting with potential buyers, but most are 1-3 years away from an actual purchase happening.
     
  9. anonymous

    anonymous Guest

    You are correct on merger. They wanted a merger last year and needed 1 year to integrate. They could not find the merger and moved on. Most tox labs are trying to sell now, but the multiple for pure tox labs is very low- 5-6x EBITDA. If they have IN contracts and are full service along with tox the multiple are in the 7-8.5x EBITDA range. So much depends on the billing. If a lab live in Tier 2& 3 multiples are low or buyers are walking away. Dominion is about 3-4 months away from selling. Other tox labs may be 1-3 years out only because their business models are flawed and buyers are low balling them. These labs want higher multiples and are not realistic about the market
     
  10. anonymous

    anonymous Guest

    If Dominion is about 3-4 months away from selling, then must be in the 11th hour of a negotiation. That's a bold statement and its veracity is reliant on inside information. Everyone in these types of negotiation has an NDA. Loose lips could be catastrophic, since it could lead to a loss of revenue via skittish and therefore at-risk clients.
     
  11. anonymous

    anonymous Guest

    Really, what did I say that is a violation of an NDA. That a deal is 3-4 months away? Did I disclose the price or the buyer or any financial or client information? No I did not. You have no idea what you are talking about. What client will be skittish at the rumor of a sale? If that client leaves then they weren't a locked down client to begin with. Get educated before you spout off like an expert, junior!
     
  12. anonymous

    anonymous Guest

    Easy Sport. Looks like I hit a nerve. You don’t have to disclose a price, or the buyer etc.… to violate an NDA. Violating an NDA would be discussing it AT ALL! What client would be skittish at the rumor of sale? Are you serious? This is the very reason an NDA exists. Do you even know why there is such a thing as an attrition rate for lab mergers or acquisitions? Company assimilation is disruptive. Service levels become compromised. Client communication faulters, turn-around time slows, reps and other supportive staff are suddenly gone etc… Competition will use this information to negatively sell against the lab(s) rumored to be sold or merged. It sounds like you are new to this industry or a complete fraud.
     
  13. anonymous

    anonymous Guest

    No nerve hit at all. Just replying to another idiot that knows nothing!Retention on any sale whether leaked or not is about 75%. Also, even if Dominion is selling, current management is staying for multiple years. My company sold a few years ago, but management stayed. No clients were lost! Ownership means shit if management remains. The only issue is when scumbag sales reps violate there restrictive covenants and steal business or the sale is to Q or L. Saying a sale is occurring is not a violation of NDA you a**hole! Also, what competition? Most labs out there suck. There are only 10 labs nationally that are any good and Dominion is one of them. This industry is full of crappy labs that promise the world and deliver nothing. That is why my lab has been around for over 40 years, so I do know more than you do. I have more knowledge in my left nut than you do in your entire body! You probably got all your knowledge from G2 or Dark Report conferences. You know what they say learn from idiots to become an idiot. You have obviously taken this to heart!
     
  14. anonymous

    anonymous Guest

    Another idiot? I have a feeling I’m not the only one who took on the Sisyphean task of finding something intelligible in your posts.

    You state that the attrition rate is 25%, but your own company was zero. Sounds like you belong to a very small company? But let’s say 25%. You have to agree these clients (25%) were lost for all the disruption of service levels I mentioned before. If you then still believe that this attrition rate would not change if clients were aware of this looming disruption, then you are the idiot.

    “Ownership means shit if management remains.” This is incoherent. “Scumbag sales reps violate there (never misuse THERE for THEIR when calling other idiots) restrictive covenants.” Other than to voice your disdain for sales reps, not sure what your point here is either. Yes, lost reps who then steal accounts could be part of attrition. Quest and LabCorp? What does this have to do with anything? Disruption is disruption.

    No competition? You refute your own argument when you state there are 10 other labs as good as Dominion. And there are dozens of small toxicology labs who, even though you say suck, are still competition. Yes, of course there are toxicology labs that truly cannot compete with Dominion.

    >>>“That is why my lab has been around for over 40 years, so I do know more than you do. I have more knowledge in my left nut than you do in your entire body! You probably got all your knowledge from G2 or Dark Report conferences. You know what they say learn from idiots to become an idiot. You have obviously taken this to heart!”<<<

    Stop! LOL! You’re killing me. You sound like a high schooler. I‘ve been in this industry almost as long as your lab, but I could care less who knows more than whom. I’m just trying to clean up after your drivel.

    And no, G2/Dark Report conferences no longer interest me. Sounds like you’re upset that your small lab with a zero-attrition rate never found it cost-effective to send someone like you.

    AND YES!!! Have you ever signed an NDA? You are prohibited from mentioning a pending sale of a company prior to this information becoming public knowledge. Come on! You’re not that stupid. You actually used the word “leaked” in your post. NDAs stop leaks which can monetary harm to negotiations.
     
  15. anonymous

    anonymous Guest

    Soon!
     
  16. anonymous

    anonymous Guest

    updates?
     
  17. anonymous

    anonymous Guest

    Whoever took the time to write this below is my new favorite human.

     
  18. anonymous

    anonymous Guest


    any updates with Dominion?
     
  19. anonymous

    anonymous Guest

    Rumor is they were looking for add on acquisition and couldn't find one. Then tried to sell and had issue getting through diligence from buyer. Other than that now news.
     
  20. anonymous

    anonymous Guest

    Heard that Dominion is bank owned now. Equity just gave it up like Ameritox did.