Business Overview

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BUSINESS SUMMARY

Founded in 1932, this Pennsylvania-based company is a highly reputable privately-owned custom fabricator of prosthetic and orthotic devices. The Company has been providing medical equipment to various individual patients and hospitals for 88 years.

The company attributes its long-tenure-ship in the industry to the superior reputation of its products, the vast expertise it has in custom fabrication of prosthetics and orthotics devices, its talented & highly credentialed staff, reliability in providing on-time project completion, and a very loyal customer base.

INVESTMENT APPEAL

Longstanding Business: The Company has been around for 88 years! It is highly reputable and is well known in the industry.

Management Will Foster Transition: Ownership is interested and willing to remain with the Company after a transaction to facilitate an orderly transition to new ownership and, as appropriate, assist in achieving long-term strategic growth objectives.

Strong Client Relationships: The Company has built an extensive customer list and good industry relationships since its inception. The customer base is loyal, which allows the Company to save marketing costs that competitors must foot, both in acquiring new customers and in obtaining repeat business from existing customers.

Highly Skilled, Loyal Staff. Led by an exceptional management team of and well-respected industry professionals within the niche services offered, will allow for a smooth transition and seamless business continuity. The key personnel will transition over and the Owner will stay on for a reasonable period to ensure the new Owner has been provided all the knowledge base and tools to succeed.

Limited Dependence On Ownership: The Company’s management is structured optimally with highly-qualified and reliable personnel that can operate the business well without the ownership’s presence.

Robust Supplier Relationships: The Company has long-term relationships with its vendor base. Additionally, the Company has multiple vendors for each of the materials it utilizes to reduce the risk of losing a single supplier.

Financial

  • Asking Price: $1,599,999
  • Cash Flow: $524,216
  • Gross Revenue: $2,357,805
  • EBITDA: $524,216
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 1932

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:14
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

Seller will stay on to train and transition the new owner for however long they may need. This Company is the Sellers baby and they will do anything to make sure its continued success.

Purpose For Selling:

Seller will stay on 3-5 years to help run the business.

Opportunities and Growth:

Significant Growth Opportunities. The Company has several growth opportunities to significantly increase both revenue and profit. These opportunities include leveraging the Company’s proven reputation to pursue and penetrate new and existing markets through enhanced sales and marketing efforts, and opening additional offices in other geographical markets to better serve distant patients & garner new ones. These opportunities are easily attainable subject to the appropriate investments in capital and human resources.

Additional Info

The business was started in 1932, making the business 90 years old.

Why is the Current Owner Selling The Business?

There are all kinds of reasons people resolve to sell businesses. Nonetheless, the real factor and the one they tell you may be 2 entirely different things. For instance, they may state "I have too many various obligations" or "I am retiring". For numerous sellers, these factors are valid. However, for some, these might simply be justifications to try to conceal the reality of altering demographics, increased competition, current reduction in profits, or an array of various other factors. This is why it is really important that you not rely absolutely on a seller's word, however rather, make use of the vendor's answer combined with your total due diligence. This will repaint a more sensible image of the business's current situation.

Existing Debts and Future Obligations

If the current company is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your offer. Numerous operating businesses borrow money in order to cover points like inventory, payroll, accounts payable, and so on. Remember that occasionally this can mean that profit margins are too thin. Many businesses come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may likewise be future obligations to consider. There might be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with suppliers that need to be met or might lead to charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the area bring in new clients? Often times, operating businesses have repeat customers, which develop the core of their everyday earnings. Specific variables such as new competition growing up around the location, road construction, and personnel turnover can influence repeat consumers and also negatively impact future incomes. One vital thing to take into consideration is the location of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Certainly, the more people that see the business often, the higher the possibility to build a returning customer base. A last idea is the general area demographics. Is the business placed in a densely inhabited city, or is it situated on the outskirts of town? Exactly how might the regional typical family earnings effect future earnings prospects?