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

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

Generational Equity

RESPIRATORY, POWER MOBILITY & HOME MEDICAL EQUIPMENT SUPPLIER

Eastern Texas

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  • 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)

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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.

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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.

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