Medical Device Manufacturer And Equipment Rental

Business Overview:

TRANSWORLD BUSINESS ADVISORS OF HOUSTON. LISTING REF # 76931-482895

UNDER CONTRACT. Very qualified buyers may be considered for back-up position. Contact broker.

Commercial Real Estate opportunity is in addition to the business, for an additional $3.3M. The complete package will be considered in submitted offer.

This opportunity consists of two specialized medical equipment divisions. One focuses on the manufacturing of medical equipment, while the other provides rentals and services for medical equipment to skilled care medical facilities. Operating the two as a combined S-Corp, the business maintains separate financial files for internal reporting purposes.

SBA pre-qualification is still pending. There are specific parameters Buyers need to meet in order to receive the NDA and subsequently the CIM.
- Buyers interested in acquiring the business AND the associated real estate will be prioritized at this time
- Minimum equity injection capacity is $1M; $1.5m + preferred
- Healthcare and / or manufacturing experience ideal
- A completed Buyer Profile will be required if one is not already on file, or an updated one, if the existing profile is inadequate

The founding owners established this business in 1992 and were the original developers of these specialized medical products and accessories. They spent the next couple of decades improving the quality of their product and further expanding to multiple product lines including bariatric beds, air mattresses and cushions. In addition to manufacturing their products under in-house names, they also produce specialized products under private labels that can be used in other industries beyond healthcare such as airlines.

In the early 2000’s, the business expanded its footprint by offering its products to skilled care medical facilities through an as-needed rental system. Initially providing their own manufactured products, today they sell, rent and service equipment and supplies to surgical hospitals, long term care and rehabilitation facilities, nursing homes and hospices. With corporate headquarters supporting the Houston Metro area, the business also has satellite locations across Texas, including Dallas and The Valley.

During 2021 the business sold to its current owner who has since focused on client profitability and expense optimization and has eliminated unnecessary overhead and increased the bottom line. It was thought this was going to be made into a family business, but they have an opportunity outside the country that is resulting in offering this to the market after a relatively brief period of ownership. 2023 delivered $3.853M in revenue, and $1.093M in Adjusted EBITDA. 1Q2024 has $376k SDE, but not all expenses track straight run rate.

In addition to the business, there is real estate available for $3.3M, which includes approximately 28,000 SF manufacturing and warehouse space (of which about 18,000 SF is climate controlled), 2,000 SF office space and 2,500 SF welding shop, for a total of about 32,000 SF, all on a 7.9 acre parcel.

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Property Features and Assets:

Monthly Rent: $10,000.00

Square Units (Foot, Meter): 32,000

Facilities: Current rent paid to related party is $10,000 / month + NNN. The real estate is available for sale for $3.3M, which includes approximately 28,000 SF manufacturing and warehouse space (of which about 18,000 SF is climate controlled), 2,000 SF office space and 2,500 SF welding shop, for a total of about 32,000 SF, all on a 7.9 acre parcel.

FF&E Overview: In addition to traditional FF&E (furniture, fixtures, and equipment) that will convey to the buyer with the business, they also naturally have an “inventory” of equipment that is rented to customers on a daily use basis. Since the business targets a 100-day payback period, capital outlay requirements are minimal. In some instances, this inventory is capitalized on its books and records, and in some instances, they have been written off through COGS and / or depreciation.

FF&E General Condition:Good

Market Competition and Expansion:

Expansion: The potential growth opportunities in this business are substantial. The original owners sold because they did not have the time, energy or focus to pursue new customers. The existing ownership has focused on learning the product and business and improving efficiencies and is just evolving to the point of customer expansion. The seller believes that the right merchandising and marketing focus will result in customer acquisition and accelerated growth. Even the websites are testament to the opportunity for SEO and other optimization opportunities. The business has the product, and the facilities to grow and produce many times what it is currently doing, with some focus on sales, growth, and marketing.

Reason for Selling:

Additional Details:

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