Respiratory, Mobility, & Sleep Therapy Equipment Rental

California

Business Summary: With year-over-year growth in sales, this home medial & respiratory equipment rental company boasted over $2.8M in sales in 2020! There are 18 qualified and knowledgeable employees already in place; personnel includes 8 full-time and 10 part-time employees in customer service, billing, delivery, and respiratory; they qualify patients to receive equipment and products that will be covered by the client’s insurance plan. This company provides guidance to clinicians and other professional healthcare workers on how to request equipment and services for patients. With over $600,000 in assets and a 15% profit margin, sales and cash flow grew in 2020 even amidst COVID-19. This company’s primary value proposition is that they help patients and their families navigate the complex health care environment and obtain medical equipment and supplies. They currently have a 40,000+ customer base and 1,800+ active equipment rentals; rental income is approximately 72% of monthly revenue. They have long term relationships with the medical community are a preferred provider for local hospitals. With limited marketing, clients come in from referrals, insurance, and contracting. Some areas of growth include implementing integrated web commerce and telephony systems and home fill oxygen solution for portable tanks, bringing the billing process in house or negotiate better rates for outsourced billing, and expanding wound vacuum referrals and lymphedema therapy referrals. Priced at $1,700,000, a 12.5% down payment of $212,500 returns $249,035 in the first year after debt payments – a 117% return on investment! The two owners are planning for retirement and have set no specific time frame for involvement but anticipate some form of personal service agreements and/or W2 employment for undetermined length of time after the transaction. They want a successful transition to ensure clients remain with the company long term.
Number of Employees: 17
Facilities / Terms of Lease: Lease: 7,200 sq. ft. – retail showroom, warehouse, offices, respiratory consulting room
Potential Growth/Expansion: Implement integrated web commerce and telephony systems, bring billing process completely in house, and explore telemedicine remote monitoring services for Medicare patients
Owner willing to finance: 12.5% Seller Financing or Equity Roll
Owner willing to train: Negotiable
Reason for selling: Retirement Planning