$3.55M revenue, $1.06M PF EBITDA Medical Inst Manufacturer for sale
| Cash Flow: | $1,058,101 |
| Inventory: | $406,000 |
| FF&E: | $4,100,000 |
| Gross Revenue: | $3,551,291 |
| EBITDA: | $1,058,101 |
| Established Year: | 1970 |
The Company is a growing, established Medical Instrument Manufacturing company located in the Midwest United States. The Company has provided high quality medical components for over 50 years, with a reputation for customer service, quality products, on-time delivery and competitive prices. Customers include large health care systems, internationally known medical suppliers and multi-billion-dollar pharma and biotechnology customers. Products include stainless steel surgical components.
Founded in 1970, the Company reported $3,192,824 in 2023 revenue, up from $2,043,418 revenue in 2019. This revenue growth implies a CAGR of 11.8%, which is 23.6x the industry growth rate of .5% for Medical Instrument Supply and Manufacturing companies over the past five years. Average pro forma adjusted EBITDA over the past three years was $844,644. This implies an average PF EBITDA margin of 26%, or 3.9x the industry average EBITDA of 6.8%.
The Company is an ISO 9001:2015 Certified Company and devotes its resources to serving the medical device industry. The Company has over 50 pieces of manufacturing equipment, including cutters, grinders, benders, and a custom-built electropolishing room. Management has invested more than $4.1 million in machinery, tools, equipment, leasehold improvements, labs, environmental management and quality control equipment. The Company has also developed six proprietary component grinding and bending machines, which can process up to a total of 33,600 components per day. Management invested over 200 hours and $600 thousand in the creation of these machines, and maintains blueprints and documentation to repair, maintain and create new machines. These investments have enabled the Company to increase revenue and profitability, outperforming industry sales growth by 23.6x since 2019, and exceeding industry EBITDA by 3.9x since 2021. Forecast 2024 revenue is on track to reach $3,551,291, and 2024 PF EBITDA is expected to reach 30%, or $1,058,101. These forecasts are based upon year-to-date financials from July 31,2024, backlog and WIP reports, and analysis of historical expense and revenue.
The Company sells its components and customized products to over 77 large health care systems, internationally known medical suppliers and multi-billion-dollar pharma and biotechnology customers. Average revenue per customer in 2023 was $67,859, and customer retention is strong, with 87% of revenue from customers who have purchased from the Company for five years or more. FDA (Federal Drug Administration) regulatory compliance is the customer’s responsibility, as customers determine design and specification of all components produced by the Company. Customers are required to obtain and maintain their own FDA approvals, and therefore the Company is shielded from the FDA approval and audit process.
The Company employs an experienced team of 20 full-time employees. Average employee tenure is 6.6 years and 40% of employees have been with the company more than 5 years.
