Listing ID: 71379
An incredible opportunity to acquire a well-established medical product manufacturing and distribution company. The company manufactures and sells wheelchair seating products to skilled nursing facilities across the country, and most recently, to hospitals. The products have been clinically proven to reduce wounds, falls, and pain, as well as to maximize patient function. The company also offers HIPAA compliant tele-consults with seating & positioning specialists for clinically complex cases and educational in-services to improve patient care and outcomes.
The company is a well-established vendor with a premium brand that holds national purchasing contracts with many of the largest nursing home operators. Their customer database comprises approximately 30,000 individual contacts; close relationships have been maintained with both corporate executive management as well as first line managers who are responsible for purchasing. The company also holds contracts with insurance companies, including UHC.
This opportunity could be utilized to facilitate expansion of the current product line, as well as to introduce new product lines to increase sales and profit with an established list of loyal customers across the nation.
The company currently manufactures the product in the United States, with an abundance of growth potential. Management team is willing to stay on and assist the new owners with the transition.
- Asking Price: N/A
- Cash Flow: N/A
- Gross Revenue: $2,138,091
- EBITDA: $108,514
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2003
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
The venture was established in 2003, making the business 19 years old.
Why is the Current Owner Selling The Business?
There are all types of reasons people choose to sell companies. Nonetheless, the true factor and the one they say to you may be 2 absolutely different things. For instance, they might state "I have a lot of other commitments" or "I am retiring". For lots of sellers, these reasons are valid. But, for some, these may simply be reasons to attempt to hide the reality of changing demographics, increased competitors, current reduction in earnings, or an array of other factors. This is why it is extremely essential that you not count absolutely on a seller's word, but rather, make use of the vendor's response along with your general due diligence. This will paint a much more sensible image of the business's current scenario.
Existing Debts and Future Obligations
If the existing business is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of companies borrow money in order to cover things like inventory, payroll, accounts payable, etc. Remember that in some cases this can imply that earnings margins are too small. Numerous organisations fall into a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may additionally be future obligations to take into consideration. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with vendors that should be satisfied or may lead to charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the location attract new clients? Often times, operating businesses have repeat customers, which form the core of their day-to-day revenues. Certain elements such as new competitors sprouting up around the area, road building and construction, and staff turnover can influence repeat customers and also adversely influence future revenues. One crucial thing to think about is the area of the business. Is it in a highly trafficked shopping center, or is it hidden from the main road? Obviously, the more people that see the business on a regular basis, the higher the possibility to construct a returning consumer base. A final thought is the basic area demographics. Is the business placed in a largely populated city, or is it located on the outskirts of town? Exactly how might the regional typical household income impact future earnings potential?