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Sleep Diagnostic Lab in Southern California

Off-Market

Arcadia, CA

Sleep Diagnostic Lab

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Revenue

$1,100,000

Earnings (SDE)

$330,000

Margin

30.0%

Year Established

2003

Listed

30+ Days

Customers

Performs 200-225 sleep studies monthly, with 100-150 in-lab overnight studies and approximately 100 at-home studies for patients analyzing their sleep patterns.

Customer Acquisition

Marketing costs are $0 annually, as the lab maintains iconic status and a backlog of patients booked 1–3 months out. Doctors refer patients to the lab.

Team

The staff includes a receptionist, an office manager/biller, and six night-shift technicians who assist patients during sleep studies. Five doctors perform study interpretations, with one to three needing retention post-acquisition to maintain operations.

Owner's Role

Two owners: one works off-site performing data interpretation remotely, never visiting the lab. The other serves as a high-level manager and visits once weekly for management purposes, getting involved only when problems or complaints arise.

Reason for Selling

The owners are looking to move on from the business but have expressed flexibility regarding post-sale involvement, offering options including complete exit, temporary consulting, or retention as medical director.

Contracts

No

Real Estate

The facility is a 5-bed, 2,500-square-foot center that is leased. Because the business operates at night, it subleases the facility to a kidney doctor during daytime hours, offsetting 80% of the $8,000–$9,000 monthly rent with $6,000–$7,000 in sublease income.

When Are You Looking to Sell

ASAP

Licenses Required

The business requires a medical director by regulatory requirement, which can be fulfilled by retaining the current staff or outsourcing to another qualified physician.

Business ID: 1775

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