Niche Psychological Testing Practice: legacy contracts – SoCal
Business Description
Price Today:$250K (Increases monthly as build-out continues – lock in now for maximum upside)
The Opportunity
Rare chance to acquire a California-based psychological testing practice positioned for rapid expansion and built on a proven, highly scalable model. We hold one of the few legacy insurance contracts in the state for psychological testing—a credential that took years to secure and generates immediate, ongoing referrals. This competitive advantage shields the practice from common credentialing delays and low-reimbursement pitfalls faced by newer entrants.
Buying now means securing a pre-growth price before additional infrastructure, contracts, and referral sources significantly increase monthly revenue—and therefore the valuation. As systems scale and operations mature, the price will rise to reflect these improvements.
Proven Growth Model
Our Massachusetts practice—recently sold—achieved a Compound Annual Growth Rate (CAGR) exceeding 62% over a seven-year period, using the same streamlined model, payer mix, and operational structure you’ll inherit here. That practice generated strong EBITDA, offering a clear blueprint for what’s possible in the California market with the same processes, staffing model, and marketing strategies.
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Why This Works
* **Niche Service** – Focus exclusively on psychological and neuropsychological testing, an underserved segment with consistent payer demand.
* **Legacy Insurance Contracts** – Rare and valuable; immediate revenue from established payer relationships.
* **Low Overhead** – Lean staffing model using psychometrists for test administration; only a small number of licensed psychologists/therapists required for interpretation and recommendations.
* **Scalable Infrastructure** – Operational systems, templates, and SOPs ready for rapid replication.
* **High Demand, Low Competition** – Few California practices offer specialized psych testing under insurance.
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Staffing & Operations
* Psychometrists administer the majority of tests, maximizing efficiency and billable hours.
* Licensed psychologists complete scoring, interpretation, and recommendations.
* Minimal therapy staffing needed; revenue is primarily testing-driven.
* Digital capacity allows for hybrid in-person/remote operations.
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Growth Projections & Expansion Potential**
* **Immediate Referrals** from legacy contracts and established marketing channels.
* Expand services **statewide via telehealth** for certain evaluation and feedback sessions.
* Add weekend/evening availability to capture school-aged and working populations.
* Introduce specialty assessments (e.g., bariatric surgery, medical clearance, forensic) for additional revenue streams.
* Partner with hospitals, school districts, and large employers to secure long-term contracts.
* Modeled EBITDA suggests **high ROI within 24–36 months**, with the potential to scale beyond that trajectory by adding just one additional licensed provider or increasing psychometrist utilization.
The Opportunity
Rare chance to acquire a California-based psychological testing practice positioned for rapid expansion and built on a proven, highly scalable model. We hold one of the few legacy insurance contracts in the state for psychological testing—a credential that took years to secure and generates immediate, ongoing referrals. This competitive advantage shields the practice from common credentialing delays and low-reimbursement pitfalls faced by newer entrants.
Buying now means securing a pre-growth price before additional infrastructure, contracts, and referral sources significantly increase monthly revenue—and therefore the valuation. As systems scale and operations mature, the price will rise to reflect these improvements.
Proven Growth Model
Our Massachusetts practice—recently sold—achieved a Compound Annual Growth Rate (CAGR) exceeding 62% over a seven-year period, using the same streamlined model, payer mix, and operational structure you’ll inherit here. That practice generated strong EBITDA, offering a clear blueprint for what’s possible in the California market with the same processes, staffing model, and marketing strategies.
---
Why This Works
* **Niche Service** – Focus exclusively on psychological and neuropsychological testing, an underserved segment with consistent payer demand.
* **Legacy Insurance Contracts** – Rare and valuable; immediate revenue from established payer relationships.
* **Low Overhead** – Lean staffing model using psychometrists for test administration; only a small number of licensed psychologists/therapists required for interpretation and recommendations.
* **Scalable Infrastructure** – Operational systems, templates, and SOPs ready for rapid replication.
* **High Demand, Low Competition** – Few California practices offer specialized psych testing under insurance.
---
Staffing & Operations
* Psychometrists administer the majority of tests, maximizing efficiency and billable hours.
* Licensed psychologists complete scoring, interpretation, and recommendations.
* Minimal therapy staffing needed; revenue is primarily testing-driven.
* Digital capacity allows for hybrid in-person/remote operations.
---
Growth Projections & Expansion Potential**
* **Immediate Referrals** from legacy contracts and established marketing channels.
* Expand services **statewide via telehealth** for certain evaluation and feedback sessions.
* Add weekend/evening availability to capture school-aged and working populations.
* Introduce specialty assessments (e.g., bariatric surgery, medical clearance, forensic) for additional revenue streams.
* Partner with hospitals, school districts, and large employers to secure long-term contracts.
* Modeled EBITDA suggests **high ROI within 24–36 months**, with the potential to scale beyond that trajectory by adding just one additional licensed provider or increasing psychometrist utilization.
About the Business
- Years in Operation
- 5
- Number of Employees
- 2
- Facilities & Assets
- The practice operates from a low-overhead, professionally furnished therapy office in Mission Viejo with a monthly rent of $1,100. It includes a private testing room, waiting area, and basic furnishings. Digital testing systems are in place, allowing for remote assessments. Assets include test kits, scoring software, EMR access, proprietary AI-driven tech, SOPs, and marketing collateral. Ideal turnkey setup for a clinician-led buyer.
- Market Outlook / Competition
- The global psychological testing market is growing fast, valued at ~$2.5B in 2024 and projected to reach $4.5B by 2033 at a 7.1% CAGR. Online testing is expanding even faster, rising from $1.5B in 2024 to $7.1B by2033 at ~22% CAGR . AI, remote platforms, and digital delivery are driving the shift. Buyers now prize practices with hard-to-obtain insurance panels, referral networks, and turnkey operations.
- Opportunities for Growth
- Immediate referrals from rare legacy insurance contracts drive consistent demand. Scalable statewide with telehealth services. Low-overhead model leverages psychometrists for most testing, requiring only a few licensed psychologists or therapists. Proven growth—our MA practice using this same model achieved 62%+ CAGR over 7 years. High demand, low competition, and streamlined operations position this practice for rapid ROI in 24–36 months. Price increases monthly as contracts, referrals, and billables grow—lock in now.
Real Estate
- Owned or Leased
- Leased
- Building Sq. Ft.
- 450
- Rent
- $1,100.00 per month
About the Sale
- Seller Motivation
- The seller is a seasoned psychologist shifting focus to entrepreneurial pursuits
- Transition Support
- Seller will provide 6+ months of support, including training on proprietary protocols, testing workflows, insurance billing nuances, and EMR use. Guidance on referral partner transition, SOP implementation, and credentialing continuity (via existing EIN) included. Smooth, hands-on onboarding to ensure operational success.
Listing Info
- ID
- 2379874
- Listing Views
- 302
Listing ID: 2379874 The information on this listing has been provided by either the seller or a business broker representing the seller. BizQuest has no interest or stake in the sale of this business and has not verified any of the information and assumes no responsibility for its accuracy, veracity, or completeness. See our full Terms of Use. Learn how to avoid scams.
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