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Online Medical Equipment Distributor--100% Dropship

Sold

Remote operation with $2M+ in sales!

CASH FLOW
$318,434

Specifications

  • Price
    $1,095,000

  • Revenue
    $2,770,938

  • Cash Flow
    $318,434

  • 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 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.

Business Highlights

  • Revenue: $2,770,938
  • Cash Flow: $318,434
  • 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: $1,095,000

 

 

  • Cash Flow: $318,434
  • 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 StatementP&L StatementTax ReturnTax ReturnTax ReturnNotes
2021202020192018
GROSS SALES$1,370,041$2,770,938$1,696,783$1,873,702
Net Income Shown on Financial Statement$160,399$245,224$24,118$-35,972
ADDBACKS
Compensation to Owner$36,750$62,250$54,000$45,500
11% Tax on total W2 Salaries$4,043$6,848$5,940$5,005
Amortization$0$2,467$2,467$2,467
Depreciation$0$1,645$0$0
Rent$0$0$0$7,700
TOTAL ADDBACKS$40,793$73,210$62,407$60,672
Seller's Cash Flow = Total Addbacks + Net Income$201,192$318,434$86,525$24,700
Profit Margin14.69 %11.49 %5.10 %1.32 %
 

Valuation

Funding Example

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Print, sign and send to:

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

Or fax to:

f 402.939.0857

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The Firm makes no warranties or representation in consideration to the information provided above. All communication regarding this business must occur directly with The Firm Advisors, LLC. The Firm is not a real estate brokerage and does not sell real estate. The Firm solely advises on exit strategy.