Company Overview
American HealthCare Capital is pleased to introduce a fast-growing, multi-site sleep disorder clinic platform in the Pacific Northwest. The revenues are derived from a sleep testing facility, e-commerce sales of equipment, and remote monitoring and compliance to treat various conditions of sleep disorders in both children and adults. In addition, telemedicine physician consultations add an additional ~$500,000 in net profit annually.
The Pacific Northwest sleep disorder center was established in 2002 as the first independent sleep testing lab in the area. It has grown to become a statewide full-service sleep clinic and sleep equipment supplier with 4 locations and 15 beds. All four centers are accredited by the American Academy of Sleep Medicine and offer the following services:
- Polysomnography aka in-lab sleep studies
- Home Sleep Testing (HST)
- Pediatric Polysomnography
- Multiple sleep latency tests (MSLT) and Multiple Wakefulness tests (MWT)
- CPAP Therapy
- SleepN Follow-Up & Remote Monitoring
- Telemedicine Consultation and Diagnosis Navigation Services
- Sales, Service and Compliance of sleep DME Equipment and supplies
Financial Overview
The company partners with approximately 200 physician providers across the state and conducts close to 2,000 sleep studies annually. About 69% of patients have private insurance, 18% are self-pay, 7% are Medicaid, 2% are Medicare, and 3% are from other sources.
Gross revenues have consistently grown yearly except in 2020 due to COVID restrictions. Still, the company managed to keep up with its revenue goals and have a higher adjusted EBITDA by being proactive in operations management during the pandemic. The table below is indicative of the finances including the physicians’ revenue which is now being outsourced and can be realized by a buyer with an in-house sleep physician or a buyer looking to form a Medical Service Organization.
| 2022 | 2023 | |||
| Gross Revenue | $4,228,787 | $4,239,079 | ||
| Adjusted EBITDA | $1,639,823 | 38.7% | $1,653,521 | 39.06% |
With Telemedicine becoming increasingly popular, the Company expects to increase revenues, reach more people to gain additional market share and remain a market leader. Additionally, the Company plans to expand its product distribution on a national level. The Company has a recognized brand and an excellent reputation with many business awards among the public and referring physicians since 2002, and thus has the competitive advantage of a high barrier of entry for any new business rival due to its strong presence and geographic location.
Staff Overview
All staff members are expected to stay post-acquisition. The existing CEO is willing to remain during a mutually agreeable transition period and compensation in a consulting & advisory role. The executive director is ready to stay post-acquisition with the company and fulfil the CEO’s role.
Asking Price
The asking price for this sleep lab for sale is to be determined. The sellers are seeking a strategic investor who can leverage the existing platform, branding, knowledge, and IP assets for further growth and expansion. They are looking for a partner with an in-house sleep physician or a group capable of creating an MSO to further grow the business and employ their own physician. They will consider all reasonable offers, including an earnout based on achieving mutually agreeable milestones.
