Mid South DME Poised to Explode Revenues!
Hardin County, TN
Asking Price: N/A
Cash Flow: $84,000
Gross Revenue: $365,000
Established Durable Medical Equipment company (begun in 1995) serves the respiratory care needs of over 400 patients in a 150-mile radius by supplying stationary oxygen, portable oxygen tanks and breathing accessories and supplies (canulas, tubing et al). The company is also well-known for sleep apnea consulting in CPAP, BiPAP and Trilogy equipment, but has to refer 600 sleep apnea patients elsewhere for their equipment, because ACA legislation reduced Medicare Medicaid reimbursements, and working capital was greatly impacted. HUGE UPSIDE POTENTIAL: A strategic buyer who wants to build market share by adding the company’s expansive service area (140 counties, between major cities), will not only enable the company to return to serving sleep apnea patients for equipment and supplies, but also be able to compete in the large durable goods market for the most common patient-care equipment: beds, manual and electric wheelchairs, bedside commodes, walkers, et al. REVENUE NOTES: The two owners seek to be (100%) acquired by a strategic partner who will supply working capital to expand equipment offerings to supply the 600 patients the company today refers to other providers. They wish to remain in the employ of the company, AND utilize their decades of DME experience to drive the business according to this precise vision: 1) Focus on sleep apnea, specifically the 3 areas currently consulting on to be able to supply POCs (portable oxygen concentrators), CPAP and BiPAP supplies (headgear, filters, tubing etc.) and Trilogy equipment, to thus bring in-house the 600+ patients currently referred elsewhere for their equipment. 2) Enter also the market to supply high margin DME equipment which expands their service offerings across many other areas of patient care: beds, manual and electric wheelchairs, bedside commodes, walkers, et al. 3) Congressional Bill HR42293 should pass this spring, which will reverse reduced Medicare reimbursements, enabling recovery of revenues retroactive to August 2017.
- Real Estate:
- Building SF:
- Lease Expiration:
- Limited competition, strong patient database
- Growth & Expansion:
- Patients have to be referred elsewhere for their POCs, CPAP, BiPAP, PAP supplies, Trilogy equipment and lifestyle DME (beds, wheelchairs et al), a huge growth opportunity
- Reason for Selling:
- Seeking a strategic DME company to come in and provide working capital