Western Drug-Testing Clinic Sold for $200K, LOI in 57 Days
Rachel Horner
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2 min read
About the Business
Industry: Health Services – Drug, Alcohol & DNA Testing
Location: West
Size: $250K–$500K in annual revenue, $100K–$150K in cash flow
Sale price: $200,000 (asking price: $306,000)
Listing to signed LOI: 57 days
Signed LOI to close: 105 days
The Challenge: Too Many Businesses, Not Enough Time
The owner's main company was growing fast, and the clinic needed an owner who could focus on it full time.
“I just don't have the time to build 2 businesses at the same time.”
57 Days to a Signed LOI: How Baton Kept the Sale on Track
What happened at every stage
Valuation: The clinic listed at $306,000, about 2.6 times cash flow, and the sale settled at the buyer's first number of $200,000.
Buyer Outreach: 83 buyers viewed the listing, 26 opened the data room, and the owner met with 3 buyers.
Offer Selection and Negotiation Support: Before the owner signed, the Baton advisor laid out what to secure first, including proof of funds and protection for the seller note. She also proposed bundling inventory into the price in place of the buyer's working-capital request.
Diligence and Closing Support: Weeks after the LOI, a regulatory delay on the franchisor's side paused approval of any new owner. The Baton advisor built a close plan backward from the approval timeline and kept the buyer's legal work moving in parallel, and the deal closed on her target date.
The Results
The buyer is a local first-time owner with a career in business development who took over as a hands-on operator. Through Baton's process, the business:
Sold for $200,000, about 1.7 times cash flow
Went from listing to signed LOI in 57 days
Closed with cash at closing plus a seller note, with no SBA loan
What's next for the owner?
The owner is focused on growing his main company after handing the clinic to a buyer who can give it her full attention.
Advice and Lessons for Future Sellers
Know your franchisor's timeline. Franchise approvals can set the pace of a sale, so plan the close around them.
Secure your seller note before you sign. Settle proof of funds and collateral terms before you sign the LOI.
Keep work moving in parallel. Restarting legal work while waiting on franchisor approval kept the close on its target date.