Business Overview:
Minimally impacted by U.S. – China trade war due to its category in health care/medically related industry.
A unique and rare opportunity. National wholesale distributor of medical supplies catered to medical hospital, clinics, dental offices, veterinarian, etc. located in Southern California. Company established over 20 years and has a solid and stable growth throughout the years. Very profitable, and easy to operate. The nature of the products which are disposable, has enabled repeat customers throughout the years of solid growth. Products are FDA regulated and has proprietary brand name, and has established a well-received reputation in these industries, as well as a loyal customer base.
Strongest selling points for this business:
– Long term and repeat customers (with over 400 customers of which 200 are active customers)
– Company is still generating new customer from referrals, trade name exposures, websites, etc
– Amazing products with established and reputable supplier network
– Easy to operate
– No specific technological expertise required
– Registered trademark with private label capability
– Proven growth track record
– In house delivery service
– Operationally efficient (only 4 people with this scale)
– Minimum human capital (HR) challenges
– Just requires a good personality to work on sales/marketing efforts
NDA is required to secure comprehensive Confidential Information Memorandum (CIM) crafted by ProNova Partners.
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Property Features and Assets:
Facilities: Commercial warehouse 9,000 plus square feet. Monthly rent is $9,800. Lease will expire in 3 years. Longer term lease can be discussed. The business has been at this location for 20 years, but it could be relocated within vicinity. Parking is plenty.
Market Competition and Expansion:
Competition: There is competition in the industry. Large companies have economies of scale in purchasing, as well as highly developed infrastructure that allow for efficient distribution. Small companies can compete effectively by specializing in a product line or by serving a local market. This Business has its own niche to stay on par with its competitors.
Growth & Expansion: For a strategic buyer, this could be a rare vertical integration opportunity that captures the whole margin of the value chain. The Company already has established supply network and customer base, which could be utilized by a manufacturing buyer to distribute its own products. For a strategic buyer, this could also be a rare horizontal integration opportunity to expand into certain product categories or geographical regions. The Company already has established product portfolio and clientele especially in the west coast region. Product group is necessary everyday item for a wide variety of industries for reasons of regulatory requirements, and health related issues. Expansion into these other industries can provide a huge potential growth opportunity. On-line, eCommerce is another avenue company has not devoted adequate efforts, however, is another huge growth opportunity for new owner.
Reason for Selling:
Retirement.
Additional Details:
- The property is owned.
- The owner is willing to train/assist the new owner.
- This is not a homebased business opportunity.
- This is not a franchise resale opportunity.
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