This medical products distributor was created in response to a critical need for medial power supply equipment that supported in-home and mobile health care products. This company now has 600 active accounts and has annual revenue growth of 30%. The owners have projected FY2019 Revenue at $5.0M with normalized pre-tax cash flow margins continuing at 17%.
The owners designed and now produce several products for large health care suppliers and then distribute these in North America, Australia and now Europe. It owns its primary product line brand and adds on other products to sell to its channel as appropriate. Customers include major healthcare product suppliers, distributors and retailers. The company has 5 distribution centers including 3 in N.A., 1 in Australia and the latest one in the EU. The business is based in Canada but could be headquartered elsewhere.
The purchaser of this business would be able to achieve significant growth by adding new product lines and accessories, entering new regional and international markets and investing in channel / end-user marketing to increase demand. Any buyer that has existing products that can fit into this distribution channel / target market would experience significant increased sales
The selling price of the business with Net Working Capital excluding inventory is C$2.5Million or C$2.0 Million without NWC. NWC reconciliation is to be 60 days from the closing date. NWC for this calculation excludes inventory and cash.
Inventory is anticipated at cost to be approximately C$600,000 at closing and will be sold as an addition to the purchase price.
The company has offices in Canada with distribution locations in other local markets serving the United States and Australia. Distribution centre lease rates vary by utilization and will be arranged by mutual agreement with the seller and DC provider.
Tremendous growth opportunities exist in new global markets and for additional complimentary products.
Some competition exists but the products being offered by this manufacturer as superior to anything else available.
Will train for 4 weeks @ no cost Limited specialized skills are needed to operate this business.