Mercer Capital’s Laboratory Services Industry Newsletter is a semi-annual publication providing perspective on valuation issues pertinent to Laboratory Service professionals. The Laboratory Services newsletter highlights the following segments: Medical Testing Labs, Life Sciences Tools & Services, Environmental & Facilities Services, Other Labs & Related Services. Each issue includes typically includes market overview, mergers and acquisitions review, guideline company pricing, and more.
Excerpting from the discussion:
According to IBIS World, the Lab Services industry has seen revenue increase at an average annual rate of 4.7% between 2009 and 2014. The industry is expected to grow at an average annual rate of 3.7% during the next 5 year period as product manufacturers strive to maintain compliance with government regulation and federal law. Within the agriculture and food testing segment, for example, increased regulation on consumer and food products have contributed to an expected 3.7% rise in revenue in 2014. The expected growth will also be attributable to increased investment in research and development.
The industry is fragmented, with the average revenue per establishment less than $1 million. The number of established companies is expected to have grown at an average annual rate of 2.6% between 2009 and 2014 and is expected to experience continued stable growth into the projected 2015-2019 period.
To read the entire write up, download the newsletter (pdf) here.