Business Sale Proposal:
Durable Medical Equipment (DME) & Medical Supply Company in Massachusetts
Introduction
This proposal offers a valuable opportunity to acquire a well-established durable medical equipment (DME) and medical supply company based in Massachusetts. Serving Massachusetts, Rhode Island, Connecticut, and New Hampshire, the company specializes in medical supplies like breast pumps, compression garments, rollators, and more. It operates through both retail and online sales, focusing on quality products and trusted service.
Company Overview
The company excels in three main product lines:
- Breast Pumps - Approximately 65% of sales, serving maternity and breastfeeding needs.
- Compression Garments - About 25% of sales, supporting clients recovering from surgeries and post-mastectomy care.
- Durable Medical Equipment (DME) - Such as walkers and wheelchairs, making up roughly 10% of sales.
Market & Client Base
The company caters to a diverse client base with 65% Medicaid, 15% Medicare, 10% insurance, and 10% private pay customers. This diversity demonstrates strong knowledge of healthcare reimbursement systems. The geographic reach covers several New England states, enhancing market stability.
Accreditation and Operations
The business operates under two NPI numbers for DME and Orthotics & Prosthetics. It holds accreditation from the Board of Certification/Accreditation (BOC), confirming its commitment to quality care and regulatory compliance.
Financial Performance
With revenues stable between $3.6 to $3.8 million and an EBITDA of approximately $500,000 (~14% margin), the company is financially sound. The asking price is $2 million, excluding inventory and financial assets/liabilities.
Growth Opportunities
- Expansion into new regions and product lines
- Enhancing online sales and e-commerce efforts
- Leveraging demographic and healthcare trends
Transition & Staff
The current owners offer support during the transition, and key staff will remain post-sale to ensure business continuity.
Rupee Junction's View
This acquisition is a compelling opportunity to enter or grow within the durable medical equipment and medical supply sector, backed by solid revenue, customer loyalty, and a strong foundation for future success.
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