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Online Medical Equipment: 100% Dropship

Over 40,000 discounted medical supplies with no warehouse or lease!

CASH FLOW
$311,586

Specifications

  • Price
    $1,075,000

  • Revenue
    $2,770,938

  • Cash Flow
    $311,586

  • Multiplier
    3.45

  • Location
    Remote / Work from Home

  • Service Area
    Nationally

  • Reason for Sale
    Retirement Planning

  • Employees
    3: 1 FT Owner, 1FT Accountant, 1PT Customer Service

This completely remote internet-enabled, multi-channel distributor of medical, surgical and therapy supplies and equipment 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 $1,075,000, a 10% down payment of $102,800 returns $172,963 in the first year after debt payments, which is a 161% return on investment.

Business Highlights

  • Revenue: $2,770,938
  • Cash Flow: $311,586
  • Year Established: 1989 
  • Location: Remote / Work from Home 
  • Service Area: Nationally
  • Clients: E-Commerce (80%), Businesses (20%)
  • Products: Medical, surgical and therapy supplies and equipment
  • Employees: 3: 1 FT Owner, 1FT & 1PT Customer Service
  • Reason for Selling: Retirement Planning
  • Seller Training Period: 6 months +

Location / Service Area

This company is a completely remote and work from home business. While the current owner is located out of their home in Tennessee, this can be run from anywhere. All employees are remote. They had an office up until 2018, but because their business is completely online, there was no business was coming in to create a need for an office. Technology was there and they took advantage of this in 2018.

This company serves clients all across the United States. There is also a small amount of business outside the country (New Zealand, England, and Central America).

Financial Highlights

 List Price: $1,075,000

 

 

  • Cash Flow: $311,586
  • Assets: $115,809
    • FF&E: $26,163
    • Software/Domain: $37,000
    • A/R: $52,646
    • Intangible: Relationships with manufactures and suppliers, top notch customer service reputation and process

Cash Flow Analysis

Description of Financial StatementTax ReturnTax ReturnTax ReturnNotes
202020192018
GROSS SALES$2,770,938$169,783$1,873,702
Net Income Shown on Financial Statement$245,224$24,118$-35,972
ADDBACKS
Compensation to Owner$62,250$54,000$45,500
11% Tax on total W2 Salaries$0$5,940$5,005
Amortization$2,467$2,467$2,467
Settlement of Claim$0$0$0One time expense
Depreciation$1,645$0$0
TOTAL ADDBACKS$66,362$62,407$52,972
Seller's Cash Flow = Total Addbacks + Net Income$311,586$86,525$17,000
Profit Margin11.24 %50.96 %0.91 %
 

Valuation

Funding Example

Purchase Price:

$1,075,000

$
%
OR
$
%
OR
$
Years
%

Bank Loan Needed: $

Years
%
$
$
$
$
$

Funding Details

Business:

Offer Price: $

% Buyer Cash Down at Closing: $

% Seller Carry Back via Promissory Note: $

year term at a rate of %

% of Purchase Price secured by Buyer and Seller

Total Bank Loan Need: $

% of Purchase Price

Desired Loan Type:

Desired Bank Terms: year term at a rate of %

Total Business Assets, Inventory, and A/R: $

Total Undercollateralized Loan: $

Loan Payments

Monthly Payment to Bank: $
Yearly Payment to Bank: $
Monthly Payment to Seller: $
Yearly Payment to Seller: $
Total Monthly Debt Service: $
Total Yearly Debt Service: $

Conclusions

Fixed Charge Coverage Ratio

The bank will require a minimum ratio of 1.5 to be lendable.

Cash Flow:
$
Annual Debt Service: $
RATIO:

Buyer's Net Operating Income (NOI)

The amount of money the Buyer will retain as profit.

Cash Flow:
$
Annual Debt Service: -$
NOI:

Buyer's Return on Investment (ROI)

The rate of return on the Buyer's down payment.

Down Payment: $
NOI:
ROI: %

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210 N 78th St. 2nd Floor
Omaha, NE 68114

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The Firm is not a real estate brokerage and therefore the staff will not handle any aspect of the lease, sale or purchase of real estate.