American HealthCare Capital is pleased to introduce a high-quality Spine related surgical products and medical device distributor for sale. The company began its operations in 2010 and is located in the South. They focus on the newest spinal technologies with the treatment of spinal pathologies by combining regenerative medical breakthroughs. The company successfully bundles the combination of Biologics and Spinal Devices that service the Cervical and Lumbar areas.
The Company’s payor mix is 100% private pay. Their customers are Hospital Systems, with no single customer being larger than 13% of revenues. The Company’s Gross Profit Margin is a healthy 78% as a result of private labeling and bundling both the biologics and medical device/equipment.
Gross revenues were $4,603,019 in 2020, $3,718,433 in 2021, and $2,948,116 in 2022 with an Adjusted EBITDA of $924,872 (31%). The decline over the past few years was due to the effects of the pandemic, during which all elective surgeries were suspended for 6 months, ultimately resulting in the retirement of several spinal surgeons in the area. Revenues have stabilized and they are now poised for growth. Current year revenues in 2023 are expected to be flat with 2022.
There are huge growth opportunities utilizing the company’s very favorable Gross Profit Margin by increasing sales reps and expanding both regionally and into multiple states. Furthermore, the company has 2 new R&D products. The first one for the Cervical area is 100% complete and ready to launch. It has already received FDA approval. The second one is for the Lumbar area and is 50% complete. These 2 new implant products could substantially increase revenues.
There is a full complement of staff that is expected to stay on under new ownership. Several of the partners want to retire, but 1 is open to staying on and could absorb the workload of the other partners.
The asking price for this opportunity is to be determined based on the interests of the prospective buyers or investors plus the cost of Inventory plus the IP value of FDA approved product ready to launch.
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.