Investor Relations | Precision DX Group
Investor Relations

Diagnostic Laboratory Roll-Up Strategy

Acquiring distressed diagnostics laboratory assets at significant discounts with proven infrastructure capable of 90,000+ samples per day processing capacity.

$102M
Peak Revenue
$36.4M
EBITDA (36%)
90K
Samples/Day
$10-20M
Investment Range

Investment Options

Flexible investment structures with strong asset coverage

Phase 1 - Minimum

Platform Launch

$10M
2.26x Asset Coverage
Equipment + BMD License $6.1M
Building Option + Purchase $8.5M
Working Capital $2.0M
Technology (OnParo) $1.0M
Transaction / Legal $400K
Target MOIC
3.0-4.0x

Full Scale (Phase 1 + 2)

$20M
Includes Rollup Capital
Phase 1 Platform (above) $10M
Lab Acquisitions (Lab 1, Lab 2, etc.) $6.75M
Integration & Technology $1.0M
Working Capital (Rollups) $750K
Contingency $1.5M
Target MOIC
5.0x+

Flexible Rollup Execution

Future lab acquisitions (Lab 1, Lab 2, etc.) can be funded through Phase 2 capital raise or seller equity participation as opportunities arise. Distressed lab owners often prefer equity in a larger platform over cash-only exits — preserving capital while aligning incentives.

Building Value
$11.5M
7% Cap, Fully Leased
Equipment OLV
$11.1M
Acquiring at $6.1M
Total Hard Assets
$22.6M
Building + Equipment
Asset Coverage
2.26x
On $10M Equity

Investment Thesis

A protected downside with significant upside through strategic lab consolidation

01

2.26x Hard Asset Coverage

$22.6M in hard assets (building + equipment) backing $10M equity investment. Building worth $11.5M (7% cap, fully leased) with $3M instant equity on exercise. Equipment acquired at 45% discount to appraised OLV.

02

Proven High-Capacity Platform

Platform assets previously processed 90,000 samples/day, generating $102M revenue and $36.4M EBITDA (36% margin). High-complexity CLIA certification positions for B2B reference lab services.

03

Fragmented Market Rollup

7,000+ independent labs in the U.S. with many distressed or aging owners seeking exits. Target acquisitions (Lab 1, Lab 2, etc.) at 0.3-0.5x revenue multiples with OnParo LIS integration creating immediate synergies.

Financial Highlights

Proven track record with clear exit path

Historical Performance (2021)

Gross Receipts $102,262,520
EBITDA $36,400,000
EBITDA Margin ~36%
Daily Processing Capacity 90,000 samples
Lab Classification High Complexity CLIA

Exit Strategy

Recapitalization (12-18 Mo)
Target LTV 65%
Structure Return of Capital + Retained Equity
Strategic Sale (3-5 Yrs)
Target Multiple 5.0-7.0x EBITDA
Potential Acquirers National lab platforms, PE-backed groups

Platform Assets

World-class laboratory facility with comprehensive equipment suite

Primary Laboratory Facility

Greenville, South Carolina

CLIA Certified
Square Footage
54,690 SF
Market Value (7% Cap)
$11.5M
Total Acquisition
$8.5M
Equity Created
$3.0M

Laboratory Equipment (OLV)

Comprehensive suite including NovaSeq, Cobas, LC-MS/MS systems

$11.1M

Equipment Acquisition Price

Acquiring at ~45% discount to appraised OLV

$6.1M

Total Hard Assets

Building + Equipment combined value

$22.6M

Asset Coverage Ratio

Hard asset protection on $10M equity investment

2.26x

Rollup Strategy

Phased approach to laboratory consolidation

Phase 1 — $10M

BMD Platform Acquisition

Acquire BMD license and equipment ($6.1M), secure building ($8.5M total for $11.5M value), deploy OnParo LIS. Establishes 90K samples/day capacity and operational foundation.

Phase 2 — Cash or Equity

Lab Acquisitions (Lab 1, Lab 2, etc.)

Target distressed laboratories at 0.3-0.5x revenue. Acquisitions funded via Phase 2 capital raise OR seller equity participation. Focus: TX, AZ, NY, OH, FL, CA. Targets confidential until LOI.

Phase 3

Technology Integration

Migrate acquired labs to OnParo LIS platform within 60-90 days. Centralize complex testing to platform lab. Realize operational synergies and margin improvement.

Phase 4

B2B Reference Lab Services

Leverage high-capacity infrastructure to offer PCR and NGS testing services to smaller labs. Low cost per test due to scale creates competitive advantage and recurring revenue.

Management Team

Experienced operator with proven track record

KM

Kevin Murdock

Founder & General Managing Partner

Built Premier Medical to $100M+ revenue and $36M EBITDA. Deep expertise in diagnostic laboratory operations, Medicare billing, and healthcare technology. Founder of OnParo LIS. Scaled operations to 90,000 samples/day processing capacity.

Request Due Diligence Package

Interested in learning more about this investment opportunity? Contact us to receive the complete DD package including financial models, asset appraisals, and strategy documentation.

Direct Contact
Kevin Murdock
Phone
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