Business Summary:
This completely remote internet-enabled, multi-channel distributor of medical, surgical and therapy supplies and equipment has made over $2M in sales, provides over 40,000 discounted medical supplies, and was established in 1989. As a pioneer in online medical supplies, this 100% drop shipper runs on thin margins to provide services to all, with 80% of the business serving consumers (e-commerce) and the other 20% serving businesses. By ordering medical supplies in advance, users and organizations, including nursing homes and assisted living facilities, can bring in cost efficiencies. As a BBB accredited business with A+ rating, they are able to keep their prices low by being an online company and not having the added expense of a retail store.
This company never sees the product but is simply the middleman between manufacturers/suppliers and the consumer. Therefore, no lease is needed, and the owner can run the company from any location. The current owner is thinking about retirement but is wanting to stay with the company for as long as needed to continue to work and aid in the transition.
COVID-19 has brought in new opportunities such as wholesale and brokering. These areas can continue to be expanded on to further increase sales and profit margins. Their current relationship with manufacturers and suppliers as well as their reputation in customer service has allowed the company to continue in their success and provide low-cost new quality products.
At the purchase price of $1,095,000, a 10% down payment of $109,500 returns $177,232 in the first year after debt payments, which is a 161% return on investment.
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