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Business for Sale: Respiratory, Power Mobility & Home Medical Equipment Supplier

Posted by Generational Equity in Dallas-Fort Worth-Arlington, TX on Apr 19, 2010

RESPIRATORY, POWER MOBILITY & HOME MEDICAL EQUIPMENT SUPPLIER

Eastern Texas

Strong historical sales growth: Compound historical growth rate of 22.9% between 2006 and 2008
Decreasing operating expenses: Operating expenses have been trending down as a percentage of sales from 27.5% from 2006 and 2008
Strong balance sheet: The unadjusted current ratio of assets and liabilities is 7.70
Open-ended transition time: Management is willing to remain through transition and all key employees will continue with new ownership
Low employee turnover: The Company enjoys an 80% employee retention rate • Easily duplicable: The business model can support multiple locations for potential rapid growth
Diverse customer base: With multiple product lines and over 2,000 customers the company is protected from any risk of losing a single large account

Business Summary #51903

Our client offers well-known and respected brands with names that are synonymous with superior quality. The specialty lines carried include respiratory care products (55%), home equipment (35%) and power mobility equipment (10%). The Company also provides respiratory evaluations and has developed a consignment program for physicians’ offices that target pediatric respiratory needs. The customer base spans 2,000 active accounts consisting primarily of geriatric consumers (55%), pediatric consumers (25%) and adult consumers with special medical needs (20%). The company differentiates itself by providing attentive and responsive customers service not only during the sales cycle but throughout the life of the customer relationship.

(Financial Summary Below)

Who should buy this company?: Economically, this company represents a sound investment opportunity as a stand alone purchase with significant opportunities to grow revenues above and beyond current projections given the appropriate investment in capital assets and human resources. The company sells to a rapidly growing demographic. Additional revenue can be achieved by placing more emphasis on developing in-home treatments and diagnostic tools.

Financial summary: Historical sales grew from $2,983,000 in 2006 to $4,507,000 in the fiscal year ending December 31, 2008 representing a Compound Annual Growth Rate (CAGR) of 22.9%. Sales have grown every year throughout the historical period. During the same period, operating expenses have been trending lower, decreasing as a percentage of sales from 27.5% in 2006 to 25.1% in 2008, as the Company focused on efficiency and keeping expenses low. This decrease occurred despite opening additional stores.

For additional information regarding Client #51903, please contact Generational Equity. You can visit the Generational Equity website at www.genequityco.com or reach the office by phone at 877-213-1792.