American HealthCare Capital is pleased to introduce a Diabetic Supply company for sale based in California. This BOC accredited company is licensed to serve patients nationwide. Their primary focus is on Continuous Glucose Monitoring systems, and all patients are on a monthly refill program.
The diabetic supply company’s payer mix is 65% Medicare, 34% Medicare Advantage, and 1% commercial insurance. The company has grown rapidly since its inception, and they expect to continue the upward trajectory into 2024 and beyond. In 2022, they generated over $7.8 million in gross revenues with an adjusted EBITDA of nearly $1.3 million (15.7%). Based on results through June 2023 and present growth trends, the company expects to gross around $14 million by the end of year with an adjusted EBITDA margin climbing towards 20% at around $2.8 million.
Because of their unique, single-product business model, they are able to generate long-term, recurring revenue, with minimal patient turnover. They currently serve over 4,800 patients (as of September 2023) with 260 – 325 new patients per month. They expect to reach 5,500 patients by the end of 2023 and 10,000 patients by the end of 2024. A new owner could continue to grow the business both organically and via the acquisition of smaller DME companies to quickly increase the patient base.
The staff is expected to stay on, and the owners will assist during a transitional period.
The asking price for this diabetic supply company is $20 million.
If you would like to learn more, please use the link on the right-hand side of the page to execute our NDA. You will need to copy the Listing Code (Example: TXMC1A) and Listing Title (Example: $1 Million Home Health Agency in Texas) from the summary above to complete the NDA.