Company Overview
American HealthCare Capital is pleased to exclusively represent an Orthopedic DME supplier in Texas. The Company was founded in 2016 and has dramatically grown over the past 8 years. It provides Orthopedic DME products, supplies, Orthotics and Prosthetics equipment and services, a fabrication lab, Orthopedic Bracing equipment and services, DME Billing Services, and Practice Management Services.
The business is organized into three operating divisions:
Orthopedic Bracing Device DME medical supplies –This business provides bone growth therapy, stimulators, and a wide variety of braces for knee, spine, hip, shoulder, fracture, and upper and lower extremities. The business contracts with approximately 35 manufacturers, including Breg, Orthofix, Healing Biologics, Deroyal, and Cork Medical.
Orthotics & Prosthetics – This business includes O&P products and complete services. It fabricates most prosthetics and custom braces through its fully functioning in-house fabrication lab and fabricators and utilizes the latest technology, patented 3D Printing. The engineers fabricate and fit lower and upper extremity Prosthetics. Each device is custom-made to fit patients’ clinical and personal preferences. It employs approximately twenty office staff, one prosthetist, four orthotists, and one orthotic fitter assistant. The business also employs/contracts with approximately fifteen sales and service reps throughout Texas.
DME Practice Management and Billing Services – The company provides these services for a wide range of clients, including Ambulatory Surgery Centers, Orthopedics, Neurosurgery, OBGYN, Anesthesia, PA/Mid-level billing, Postoperative Surgical Dressings (Joint Venture with Biologics manufacturer), and Pharmacy. This division also has a sales pipeline with robust growth in 2025.
Staff Overview
The business has 72 employees and 58 outside contractors, totaling 130. The staff is expected to stay on under new ownership, and the co-founders are open to assisting during a transitional period.
Financial Overview
In 2022, the combined company generated $20.6 million in revenue, $4.3 million in EBITDA, and a 20.8% EBITDA margin. In 2023, after the results of an expenditure misstep, the company generated over $21 million in revenue with an EBITDA close to $2.8 million. In 2024, they reversed their prior plan and restored improved profitability. Although their annualized 2024 revenues are expected to be $20 million, they are seeing significant growth in profitability with an EBITDA of approximately $3.5 million. For 2025, the company forecasts revenues of $21.6 million and an EBITDA of $3.9 million, an 18% EBITDA margin.
Asking Price
The asking price for this opportunity is $35 million with the possibility of an earnout going forward. This does not include Real Estate or Inventory.
