Business Overview

This rapidly growing company is a provider of healthcare related point-of care products, and infection prevention or control products to all health systems and clinics primarily in the Southeastern US. The company provides a custom product/services solution with critical ongoing maintenance services that has helped them to establish and maintain long term client relationships.

As a result of a broad based initiative to enhance several aspects of the company’s business model, operations, sales, marketing and processes, the company enjoyed a very successful 2021 and 2022, and is positioned to enjoy continued strong growth in the years ahead. Annual revenue grew from $1.44 MM in 2019 to $2.95 MM in 2020 to $4.7MM in 2021. Strong growth opportunities exist with all products and services going forward, and expansion into new geographic markets is possible. A strong pipeline of new business is already in the works for 2022.

The company represents several leading healthcare and technology product lines and has been very successful in developing new relationships with other manufacturers, distributors and resellers. Strong alliances exist with companies such as Hewlett Packard, Lenovo, CISCO, Microsoft, Capsa Healthcare and others. The company’s client list of over 200 clients includes many of the who’s who of healthcare providers in the Southeast, and they continue to win major new clients throughout the region. Infection prevention and control is now and will continue to be a priority across industries in the COVID and post-COVID world. The company can grow this business in healthcare and across other industries.

Healthcare industry experience is not required for a new owner, but IT industry experience would be beneficial. Executive level experience in managing a large organization or business ownership experience of a multi-million dollar company is required.

Financial

  • Asking Price: $1,435,000
  • Cash Flow: $511,524
  • Gross Revenue: $4,728,693
  • EBITDA: N/A
  • FF&E: $65,000
  • Inventory: $250,000
  • Inventory Included: Yes
  • Established: 1972

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:7
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The home office is located in North Metro Atlanta. The facilities are owned by the business owner and includes three office/warehouse condominiums in a mixed-use complex. The third condominium was acquired in May, 2021, increasing total facilities square footage by 50%. The owner will lease this space for $5,000/mo., and there would be annual condo association fees of $11,256. Or, the real estate can be acquired for $800,000.

Is Support & Training Included:

Will train for 4 weeks @ $0 cost.

Purpose For Selling:

Owner is retiring.

Pros and Cons:

The company’s combined point-of-care product and related services offering is unique in their market. Their competition does not offer a combination of products and services to be a total solution provider. Some competitors offer no service at all. The company also offers a broader range of point-of-care products and custom solutions in their niche. This has been a key factor in the company being recognized as an approved vendor for several top healthcare companies. Many of their clients have a short list of approved vendors and the process for a new vendor to achieve approved vendor status can take as long as two years. Some healthcare companies are currently not open to adding vendors to their approved vendors list at this time.

Opportunities and Growth:

The company’s market has mostly been clinics and health systems within a 300 mile radius from their home office, but interest in the company's products and services is on the rise in other regions of the country. New business has been acquired by client and partner referrals, direct email and phone marketing campaigns, and Ad campaigns with Bing, Google, Facebook, Twitter and LinkedIn. Attending industry related conferences and shows will raise awareness of the company, and this activity will increase as COVID becomes less of a factor. Going forward, sales can be in increased by adding sales staff and more technicians locally and in remote locations. Today, the owner is responsible for sales. Other company staff have identified new sales opportunities in their dealings with clients, and employee referrals could be increased. Cross-selling activity should be increased as many clients are not using both the company’s point-of-care products and infection prevention and control products. Sales of infection prevention and control products could be expanded beyond healthcare into other industries. Several healthcare systems and clinics throughout the Southeast need the company’s point-of-care products, and many have a large existing inventory of these products that are in need of repair. COVID has increased the need for repair of these products due to heavy usage. An opportunity exists to increase sales of refurbished point-of-care products to healthcare facilities with tight budgets, especially in rural areas.

Additional Info

The company was founded in 1972, making the business 50 years old.
The deal shall include inventory valued at $250,000, which is included in the asking price.

Why is the Current Owner Selling The Business?

There are all sorts of reasons why individuals decide to sell operating businesses. Nevertheless, the real factor vs the one they tell you might be 2 entirely different things. For instance, they may claim "I have way too many various responsibilities" or "I am retiring". For numerous sellers, these reasons are valid. But also, for some, these might just be justifications to attempt to hide the reality of altering demographics, increased competition, recent reduction in profits, or a variety of other reasons. This is why it is extremely essential that you not rely completely on a seller's word, but instead, utilize the seller's solution combined with your overall due diligence. This will repaint a more sensible picture of the business's existing scenario.

Existing Debts and Future Obligations

If the existing company is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your deal. Many operating businesses finance loans in order to cover points like inventory, payroll, accounts payable, etc. Remember that in some cases this can suggest that revenue margins are too thin. Many businesses fall under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future obligations to think about. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with suppliers that need to be satisfied or may result in charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the area bring in brand-new clients? Often times, companies have repeat consumers, which develop the core of their day-to-day revenues. Certain elements such as brand-new competitors growing up around the location, road building, and also personnel turn over can affect repeat consumers and also negatively impact future earnings. One crucial thing to take into consideration is the location of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Certainly, the more people that see the business often, the higher the possibility to build a returning client base. A final thought is the general area demographics. Is the business located in a densely inhabited city, or is it situated on the outskirts of town? Exactly how might the regional median house income effect future income prospects?