Healthcare Equipment & Facility Solutions Distributor, Southwest Non-Clinical Supplier

$3.9M

Revenue

$1.4M

SDE

3.1x

Multiple

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This independent healthcare products and services company provides non-clinical equipment, facility solutions, and related consulting services to hospitals and healthcare facilities throughout the... Businesses Franchises Brokers Loading... Established Healthcare Equipment & Facility Solutions Distributor Asking Price:$4,500,000 Cash Flow (SDE):$1,434,305 EBITDA:Not Disclosed Gross Revenue:$3,860,143 Established:Not Disclosed Established Healthcare Equipment & Facility Solutions Distributor Business Description SBA and Seller Financing Available This independent healthcare products and services company provides non-clinical equipment, facility solutions, and related consulting services to hospitals and healthcare facilities throughout the Southwest. The business generates revenue through a combination of manufacturer representation, product resale, and coordinated installation services.The company has built long-standing relationships with approximately 900 healthcare facilities and enjoys a high level of repeat business. Its consultative approach, industry expertise, and reputation for responsiveness have created significant barriers to entry and a loyal customer base.Operations are lean and scalable, supported by a remote workforce, subcontracted warehousing, and installation partners. Interested buyers should have $489,400 in available capital for the down payment.Listing ID: 59038 Ad#:2525157 Detailed Information Furniture, Fixtures, & Equipment (FF&E): $3,000 Included in asking price Employees: 5 (4 Full-time, 1 Contractors) Facilities: Home Based Financing: Seller financing available SBA & Seller Financing Available. Down Payment of $489,400. Reason for Selling: Retirement Home-Based: This business is currently Home-Based Listing Statistics Saved This Listing Listing Last Updated Appeared in Search Listing Detail Views BizBuySell EDGE Know the True Market Value Before You Make an Offer Get valuation data to negotiate with confidence. Get a Valuation Report Business Listed By: Sunbelt Advisors Sunbelt Business Advisors View My Listings Phone Number 763-363-4274 Voice only (no SMS) Ad#:2525157 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. Learn how to avoid scams. 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Why we like it

Earnings quality is strong for a distributor: $1.43M SDE on $3.86M revenue is a ~37 percent margin, well above typical resale-and-install businesses. The consultative, manufacturer-rep model captures commission plus resale plus installation labor, which stacks multiple revenue lines onto the same customer relationship.
The moat is the customer base. Roughly 900 healthcare facility relationships with high repeat business took years to build, and hospital purchasing is credential-heavy and relationship-driven, which slows any new entrant. Responsiveness and industry expertise are cited as barriers to entry, and in this niche that is credible.
Healthcare facilities keep buying non-clinical equipment and facility solutions in any economy because hospitals cannot defer core operations. This is a needs-based B2B customer with sticky procurement, so demand holds up through a downturn far better than discretionary distribution.
The cost structure is a gift to an operator. Home-based, five people, subcontracted warehousing and installation means the model is asset-light and scalable, so incremental revenue drops to the bottom line without heavy fixed-cost additions.

How to improve it

Map revenue and margin by each of the three legs (manufacturer rep, resale, installation) in the first 90 days. Understanding which line drives profit tells you where to lean in, and whether installation is a loss leader or a real margin center worth expanding.
Build a formal account management cadence across the 900 facilities. Many relationships likely run through the retiring owner, so systematizing contact, quoting, and reorder prompts protects revenue during transition and surfaces cross-sell opportunities inside existing accounts.
Add or renegotiate manufacturer lines to widen the product catalog sold into the same customers. Every incremental SKU you can push through the existing 900 relationships is nearly free distribution and directly expands wallet share.
Layer in a light CRM and quoting system if one does not exist. A five-person shop often runs on the owner's memory and spreadsheets, and documenting the pipeline both de-risks the acquisition and creates a platform for adding salespeople.
Expand geographically beyond the Southwest using the same asset-light playbook. The subcontracted warehousing and installation model is portable, so adding a second region mostly requires new manufacturer agreements and a couple of reps, not capital.
Introduce recurring service or maintenance contracts on installed equipment. Converting one-time installs into ongoing facility-service revenue would smooth cash flow and raise the eventual exit multiple by adding contractual recurring revenue.

Diligence notes

Concentration is the first thing to verify. With 900 facilities the base looks diversified, but confirm the top 10 customers as a share of revenue and whether a few large hospital systems drive the bulk of cash flow. Same question for manufacturer lines, since losing a key rep agreement could gut margin.
Scrutinize how dependent the business is on the retiring owner. If the ~900 relationships and manufacturer agreements are personal to the seller, the transferability of that goodwill is the whole deal. Nail down the transition period and whether reps or contracts require re-approval on a change of ownership.
Normalize the $1.43M SDE and understand the add-backs. A home-based, five-person business often has personal expenses running through it, so verify the true owner benefit and confirm the 37 percent margin is sustainable and not inflated by a strong recent year.
Confirm the manufacturer rep agreements are assignable and understand their terms. Rep contracts frequently include change-of-control or termination clauses, and if the OEM relationships do not transfer cleanly, a large chunk of the revenue is at risk on close.
Test the SBA financing math and working capital needs. At a 3.14x multiple with SBA and seller financing available, verify the debt service coverage against normalized cash flow, and quantify the inventory and receivables float required to fund the resale and install cycle.

Source

Originally listed on BizBuySell. View original listing →