Years Established:

1999

Property Type:

Lease

FF&E:

$ 42,000

Inventory Value:

$ 825,000

Premise Details:

This company operates from a 7,000-square foot office space. Facility feature includes Conference room, Kitchen, Repair shop and Loading dock for trucks and nearby warehouse facility. The facility is leased from a third party at the fair market rate. The lease was established in 2002, expires at the end of 2014, and has a three-year renewal option.

Competition:

Demand for medical care, supplies, and equipment is expected to rise rapidly as the US population ages. The number of Americans 65 and older is expected to increase by more than 35% between 2010 and 2020, compared to a 10% increase in the population as a whole. One of every five dollars spent in the US is anticipated to go to healthcare by 2020. From an international trade perspective, the largest and most technically advanced medical supplies and equipment manufacturers are located in developed nations such as Ireland, Germany, Canada, USA and Japan. The US is the largest healthcare equipment and supplies market in the world, generating 42% of global revenue, based on data from the US Census Bureau. The European market accounts for a further 35% of the global total. Government and nonprofit hospitals account for more than 90% of industry revenue. Increased Demand from Outpatient/ Surgical Centers: Many noninvasive surgical procedures, and some invasive ones, have been transferred out of the hospital and into walk-in facilities that perform same-day services. This trend will continue as it saves the payer money (no overnight hospital stay), and may result in better quality of service, as the procedures are performed by specialists. Distributors focusing on the outpatient sector may enjoy strong demand.

Expansion Potential:

Expanding beyond North America through online efforts or trade shows will result in a larger customer base. Management plans to attend international trade shows in Latin America, Asia, or Europe in 2014. By expanding into arthroscope instruments would diversify its product line. These are closely related to orthopedic products, and the Company has received requests for them in the past. Management cites that the Company now has access to a specific line with a patent (now expired) previously held by a competitor. Expanding into ophthalmology instruments would also diversify the Company’s product line. These items are high-priced with high mark-ups, and corresponding competition in this niche is not fierce. In addition, management cites that competition related to these products is currently non-existent in Asia. Management has intended development of an e-store, which will result in an expanded end user customer base. It also recently launched a resource catalog with an expanded line of orthopedic instruments which will bolster product sales growth in the short and long-term. It is also contemplating entering into a joint venture in order to begin production of Company-developed instruments in order to increase quality control and better lead times.

Employees:

19

Support & Training:

Management will remain through transition period in order to ensure a seamless transfer of ownership additional consulting after transition period is negotiable.

Reason For Selling:

Retirement