SDVOSB VA Medical Equipment Supplier, Federal Accessibility Contractor

$13.4M

Revenue

$1.6M

SDE

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Full Editorial Writeup

This is a federally certified Service-Disabled Veteran-Owned Small Business (SDVOSB) that supplies, delivers, installs, and services durable medical equipment and home-access products for the Veterans Administration. The product mix centers on accessibility gear: modular ramps, stair lifts, vertical platform lifts, and vehicle lifts. Roughly 94 to 97 percent of sales flow from VA hospitals across multiple VISNs under multi-year federal contracts, which gives the revenue base an unusual degree of predictability for a services-and-install business.

The economics are attractive on paper. On $13.4M of revenue the business throws off $1.55M in owner cash flow, an 11.6 percent margin, with the listing citing minimal CapEx, no seasonality, no backlog, and same-day project completion that drives high throughput. Revenue is diversified across service fees, labor, and product sales, and the company operates from leased warehouses in multiple states, each run by an experienced office manager, with the owner overseeing installations, repairs, training, and field operations full-time.

The defining feature and the defining risk is the SDVOSB set-aside. The certification is both the moat and the leash: it wins the contracts, but a buyer must personally qualify as a service-disabled veteran with ownership and control to preserve them. That single requirement dramatically narrows the buyer pool and makes the eligibility structure the first thing any serious acquirer needs to underwrite.

Why we like it

Earnings quality is strong for a contractor: $1.55M cash flow on $13.4M revenue with same-day completion, no backlog, and minimal CapEx means cash converts quickly and working capital is not chewing up returns. Revenue spread across service fees, labor, and product sales reduces reliance on any single line item.
The moat is regulatory and real. SDVOSB set-aside status plus a decade-plus of VA VISN relationships creates a protected channel that non-certified competitors legally cannot access, and the incumbent advantage on multi-year contracts is sticky. That certification is why margins hold up in a fragmented install trade.
Demand is genuinely recession-proof and demographically tailwinded. The VA does not cut accessibility installs for disabled veterans in a downturn, and the aging veteran population points toward sustained volume for ramps, lifts, and mobility equipment funded by federal appropriations rather than discretionary consumer budgets.
The revenue is recurring in substance: multi-year federal contracts with a returning institutional buyer, not one-off jobs re-won each time. Geographic expansion across the national VA system is a clear, executable growth path since the operating model already runs from multiple leased warehouses with managers in place.

How to improve it

Lock the certification transition first. Structure the deal so a qualifying service-disabled veteran holds the requisite ownership and control from day one, and get written confirmation the VA will not treat the change as a novation risk to existing contracts. Nothing else matters if this fails.
Bid into adjacent VISNs immediately. The model already runs multi-state from leased warehouses, so replicating the office-manager-plus-install-crew unit in two or three new regions is the fastest organic lever given the same-day, low-CapEx delivery model already proven.
Reduce single-owner key-person dependence. The owner personally oversees installations, repairs, training, and field ops, so document SOPs and promote a regional operations lead in the first 90 days to make the business run without the seller before transition support ends.
Diversify beyond VA within set-aside eligibility. Roughly 95 percent concentration on VA hospitals is the biggest earnings risk, so pursue SDVOSB set-asides at other federal agencies and IDIQ vehicles to broaden the government-contract base without abandoning the core.
Build a proposal and capture function. Federal revenue depends on winning and renewing contracts, so invest in a dedicated capture/proposal capability to track recompetes early, protect incumbent positions, and systematically pursue new task orders rather than relying on relationships.
Tighten procurement and margin on product sales. With product being one of three revenue lines, negotiate volume terms with lift and ramp manufacturers and standardize the equipment catalog to lift gross margin across the install base.
Formalize a subcontractor bench for surge capacity. Same-day completion is a selling point, so a vetted network of licensed installers across regions lets you scale volume during contract ramp-ups without carrying fixed labor cost between task orders.

Diligence notes

Verify the SDVOSB certification status, renewal timeline, and the exact ownership/control tests under VA and SBA rules. Confirm whether a sale triggers recertification, and model the downside scenario where certification lapses and the roughly 95 percent VA revenue is at risk.
Pull the actual contract portfolio: award values, remaining terms, option years, recompete dates, and any single-award versus IDIQ structure. Concentration this high means the renewal calendar is effectively the risk profile of the entire business.
Scrutinize the cash flow definition. The $1.55M is labeled SDE, so confirm what owner add-backs are included, whether the owner's full-time field role would require a replacement hire, and what true EBITDA looks like after paying a manager to do the owner's job.
Test the same-day, no-backlog, no-seasonality claims against historical job records and revenue by month. Confirm the multi-state warehouse leases, their terms, and that each location's office manager is retainable, since the operating model depends on them.
Review the litigation, claims, and past-performance history in federal databases including CPARS and SAM. Any performance issues, protests, or debarment flags directly threaten future award eligibility and should be verified independently, not taken from the listing.

Source

Originally listed on BizBuySell. View original listing →