Transition is Paramount For Small Lab Owners

"What could my lab possibly be worth--I AM the lab," says a respondent to LMT's Exit Planning survey. Given the number of solo operations and very small laboratories in our community, this is a common concern when it comes to exit planning. In fact, in our survey, those with fewer than three employees are the only lab owners who say their exit strategy is simply to sell off their equipment and shut their doors.

But if you're willing to plan ahead, that may not be your only option. If there's no family member or employee interested in buying your laboratory, a sound strategy is to merge with another lab that is interested in bringing you, any technicians and your clients on board. In a case like this, the perceived value of your laboratory is directly proportionate to your willingness to stay to ensure a seamless transition.

And the more dependent your laboratory is on you, the longer that transition will need to be. Therefore, finding the right...