Profitable Medical Equipment Repair Business

Oakland County, MI

Profitable Medical Equipment Repair Business
Contact Seller

Asking Price: Get Financing: $425,000

Cash Flow: $155,000

Gross Revenue: $500,000

EBITDA: N/A

FF&E: $15,000

Inventory: $15,000

Lease Rate: N/A /SF

Established: 1984

Profitable Medical Equipment Repair Business

Get Financing Save Print Share Valuation Report

Business Description

It has been a great 34-year run for the founder/owner/seller of this nicely profitable niche business specializing in repairing medical equipment, but now at retirement age, the owner looks forward to transitioning his company to only its second owner-operator. Located in a leased 1800 square foot space on a well-traveled road in a desirable community in SE Michigan, the company enjoys a very favorable rent at only 3.0% of revenues. The business employs two loyal and well-paid employees and a single commission (only) salesman.

Facing only two competitors in the company’s marketing area, the business services customers throughout Southeast Michigan, including the Metro Detroit area and stretching to Port Huron, Flint, Saginaw, and Bay City to the north. The business also services customers as far as Toledo to the south and Lansing to the west. Customer concentration isn’t a problem, with the top customer accounting for less than 5% of sales. There are more than 4000 customers in the company’s database with more than one-third of them active during the past three years.

The company performs equipment repairs for a variety of medical facilities such as doctor, dentist and veterinary offices, medical clinics, and small hospitals. The company also both refurbishes and sells a long list of equipment, and re-upholsters examination tables and chairs. The sale of refurbished equipment and re-upholstery services comprise about 25% of total revenues. Doctors, clinics, and small hospitals are under enormous financial pressure to control costs. Consequently, they look to repair or purchase used equipment which is reflected in the company’s revenue growth of 22% between fiscal 2015 through fiscal 2017.

The business, which averaged more than $500,000 of annual revenues during the past four-year period with average annual SDE (seller’s discretionary earnings – cash flow available to pay an owner-operator and service debt) of $155,000 had a double-digit increase in SDE for the most recent fiscal year. The business is being offered for $425,000 which is an attractive 2.7x average SDE. The seller is contemplating an asset sale which has the seller retaining cash and A/R while retiring all liabilities. The listing price includes all equipment and approximately $15,000 of inventory. A meaningful seller note will be available to a qualified buyer.

To learn more about this excellent business opportunity, please contact Steve Kandt (steve.kandt@praxisbusinessbrokers.com).

Detailed Information

Inventory:
Included in asking price
Real Estate:
Leased
Building SF:
1,800
Lease Expiration:
N/A
Employees:
3
Furniture, Fixtures, & Equipment (FF&E):
Included in asking price
Facilities:
Located in a leased 1800 sf. space on a well-traveled road in a desirable community in SE Michigan.
Support & Training:
30 days training and transition. Additional support can be provided through a consulting agreement.
Reason for Selling:
Retirement
Contact Seller

Contact the Seller

(from currently available funds)
 
Contact Seller Loading

Steve Kandt

Business Listed By:
Steve Kandt

Praxis Business Brokers

Show Phone Number

View My Listings


Sponsoring Broker:
Michael Greengard

Listing Statistics

Saved This Listing:
Unlock
Days Active On Site:
Unlock
Appeared in Search:
Unlock
Listing Detail Views:
Unlock


Ad#:1522225 Report an issue with this listing

The information in this listing has been provided by the business seller or representative stated above. BizBuySell has no stake in the sale of this business, has not independently verified any of the information about the business, and assumes no responsibility for its accuracy or completeness.
Read BizBuySell's Terms of Use before responding to any ad.


Similar Listings


Blo Blow Dry Bar

Franchise Opportunity In MI
Capital Required: $160,000