Advanced Strategic Partners (ASP)

Mergers and acquisitions activity in the laboratory sector remains robust. This has become evident with the emergence of new buyers, increased need of lab services data in the healthcare industry, and the need for the larger labs to meet Wall Street growth expectations outside of internal organic growth strategies. This has resulted in all time high multiples for properly positioned laboratories.

Advanced Strategic Partners (ASP) is an expert in this landscape, with laser focus in the lab sector, helping buyers and sellers unlock maximum value through its complete suite of M&A advisory services.

Focusing on the middle-market diagnostic lab industry, the experts at ASP, with years of experience as laboratory owners, and C-level executives at various laboratories, bring a powerful networking quotient to its clients.

“With more than 100 years of combined expertise in all aspects of the lab industry, our team positions the seller to receive maximum value while reducing risk for buyers,” says Melissa Butterworth, Founder and CEO of ASP.

Experience Meets Expertise

A seasoned player in the laboratory industry with more than two decades of experience, Butterworth has overseen over $2B in clinical, anatomic, molecular, cancer genetic and hospital outreach laboratory transactions during her career. She is the author of The End Game: A Laboratory Owner’s Guide to Maximizing Valuation. Led by Butterworth & Dan Lucky, ASP oversees every facet of an M&A transaction. Every member of the ASP team came from the laboratory sector making them uniquely qualified to assist lab owners. “As industry insiders we understand the nuances a buyer will consider when placing value on a laboratory, and, we have inside relationships with key buyers, which is critical to obtain the best results in any transaction,” says Dan Lucky.

Rooted in a profound understanding of the interplay between value and risks, the team initiates the process by evaluating a seller’s preparedness. This assessment extends to determining the strategic positioning necessary to optimize their overall value.

“Sellers may need additional advisement with compliance, strategic positioning, growth strategies, risk assessment or increasing operational efficiencies. We have the necessary expertise with our newly formed partnership with Take Charge & Mr. Gary Huff to help them accomplish these goals and enhance their market value,” says Butterworth.

To ensure sellers attract potential buyers, ASP assembles an expert advisory team to make these assessments and put a plan of action in place.

At the same time, working in conjunction with the buyers, ASP gains a deep understanding of their strategies to provide sellers confidence that they are in alignment as to achieve maximum value for their business.

With its proficiency in market analysis, ASP empowers sellers to benchmark themselves against valuations from recently sold laboratories. The power of data and market statistics are harnessed to provide sellers with a comprehensive view of their position in the industry while ensuring they remain resilient to inflation-induced uncertainties that often disrupt business valuations.

The team delves deep into the intricacies of each transaction, ensuring that every deal is meticulously structured, with potential risks mitigated to secure optimal outcomes for sellers and buyers. In a field where the smallest detail can make a big difference, ASP handholds clients from the moment objectives are defined to the point the deal is inked, and even beyond the transition.

Powering the Future of Partnerships

With laser focus on clinical, anatomic, molecular and hospital outreach laboratory businesses, ASP has played a crucial role in many landmark M&A transactions.

A recent one is the collaboration between Versant Diagnostics, Dahl-Chase Pathology Associates and DAHL Chase Diagnostic Services, expertly facilitated by ASP.

Dahl-Chase Diagnostic Services is backed by its 50-year-old legacy of providing surgical pathology, histology, immunohistochemistry, cytology, flow cytometry and molecular diagnostic services to hospitals and physician offices. Working together with Dahl-Chase Pathology associates—a group of 15 pathologists certified by the American Board of Pathology—Dahl-Chase Diagnostic Services stands as a model of high-quality pathology services.

Versant Diagnostics, known for putting cutting-edge technology into the hands of the country’s leading pathologists, aims to build the nation’s largest physician services company focused on digital anatomic pathology. This strategic collaboration enables Dahl-Chase to elevate its physician services and ultimately improve patient outcomes.

Designing Successful Exit Plans

ASP’s exceptional advisory services is truly a game-changer for clients formulating exit strategies amid pricing pressure and shrinking profit margins. To further help laboratories fill gaps in their exit strategies and overcome hurdles during M&A processes, ASP has an exclusive partnership with Take Charge, an advisory company led by the former CEO of LabCorp Diagnostics and Baylor Genetics.

Take Charge brings the expertise, experience, and leadership needed to guide and help entrepreneurial small and midsized labs differentiate, compete, and thrive in a highly regulated industry while positioning them for an optimal exit. Over the last 18 months, as a partner of ASP, Take Charge has worked closely with many of ASP’s clients, utilizing Mr. Huff’s insider knowledge, 30+ years of experience, strategic capabilities, and inside trusting relationships to position labs in the market for their own successful “End Game.”

Setting Sights on Organic Growth

ASP has been involved in over 80 transactions, exceeding $2 billion in new business revenue and or M&A transactions.

To power its organic growth strategy, ASP is launching a lab-specific podcast curated by its seasoned senior lab executives. Dedicated to helping lab professionals thrive in a dynamic industry, discussions will span on topics such as M&A, regulatory, compliance, sales and marketing strategies, lab stewardship, supply chain efficiency, and numerous other areas integral to the diagnostic landscape.
“We are committed to delivering valuable insights and expertise through our podcast in a clear, informative and engaging manner,” says Butterworth.

ASP is keen on growing through strategic business partnerships. In January 2023, ASP added another senior industry veteran to its already dynamic team, by bringing on Rick Cooper, former Chair of the National Healthcare Practice Group and Co-chair of the Healthcare Restructuring Practice Group of the prestigious law firm of McDonald Hopkins. During Rick’s 42-year tenure with the firm, he oversaw dozens of lab transactions. In addition, he led the development of the firm’s lab industry team which represented over 350 labs and 500 pathology groups nationwide.

ASP recently announced a partnership with Accumen, an organization offering the combination of expert lab consulting, analytic technology and managed services to transform lab operations. This collaboration will empower hospitals, health systems, and independent labs to harness ASP’s M&A expertise, in conjunction with Accumen’s cutting-edge technology and expert consultancy, to deliver comprehensive and holistic clinical services.

Any diagnostic laboratory looking to navigate the intricate path of mergers and acquisitions, transform potential challenges into opportunities, and ensure business growth can end its search for the right guidance with the team at ASP.