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Medical Instrument Company $3.9M revenue, $1.24M PF EBITDA
Business Description
The Company is a growing, established Medical Instrument Manufacturing company located in the Midwest United States. The Company has provided high quality medical components for over 50 years, with a reputation for customer service, quality products, on-time delivery and competitive prices. Customers include large health care systems, internationally known medical suppliers and multi-billion-dollar pharma and biotechnology customers. Products include stainless steel surgical components.
Founded in 1970, the Company reported $3,941,894 million in 2024 revenue, up from $2,043,418 revenue in 2019. This revenue growth implies a CAGR of 14%, which is 28x the industry growth rate of .5% for Medical Instrument Supply and Manufacturing companies over the past five years. Pro forma adjusted EBITDA in 2024 was $1,238,684. This implies an average PF EBITDA margin of 31%, or 4.6x the industry average EBITDA of 6.8%.
The Company is an ISO 9001:2015 Certified Company and devotes its resources to serving the medical device industry. The Company has over 50 pieces of manufacturing equipment, including cutters, grinders, benders, and a custom-built electropolishing room. Management has invested more than $4.1 million in machinery, tools, equipment, leasehold improvements, labs, environmental management and quality control equipment. The Company has also developed six proprietary component grinding and bending machines, which can process up to a total of 33,600 components per day. Management invested over 200 hours and $600 thousand in the creation of these machines, and maintains blueprints and documentation to repair, maintain and create new machines. These investments have enabled the Company to increase revenue and profitability, outperforming industry sales growth by 28x since 2019, and exceeding industry EBITDA by 4.6x since 2021. Revenue in 2024 reached $3.9 million and 2024 PF EBITDA reached 31% or $1.24 million.
The Company sells its components and customized products to over 77 large health care systems, internationally known medical suppliers and multi-billion-dollar pharma and biotechnology customers. Average revenue per customer in 2023 was $67,859, and customer retention is strong, with 87% of revenue from customers who have purchased from the Company for five years or more. FDA (Federal Drug Administration) regulatory compliance is the customer’s responsibility, as customers determine design and specification of all components produced by the Company. Customers are required to obtain and maintain their own FDA approvals, and therefore the Company is shielded from the FDA approval and audit process.
The Company employs an experienced team of 20 full-time employees. Average employee tenure is 6.6 years and 40% of employees have been with the company more than 5 years.
Founded in 1970, the Company reported $3,941,894 million in 2024 revenue, up from $2,043,418 revenue in 2019. This revenue growth implies a CAGR of 14%, which is 28x the industry growth rate of .5% for Medical Instrument Supply and Manufacturing companies over the past five years. Pro forma adjusted EBITDA in 2024 was $1,238,684. This implies an average PF EBITDA margin of 31%, or 4.6x the industry average EBITDA of 6.8%.
The Company is an ISO 9001:2015 Certified Company and devotes its resources to serving the medical device industry. The Company has over 50 pieces of manufacturing equipment, including cutters, grinders, benders, and a custom-built electropolishing room. Management has invested more than $4.1 million in machinery, tools, equipment, leasehold improvements, labs, environmental management and quality control equipment. The Company has also developed six proprietary component grinding and bending machines, which can process up to a total of 33,600 components per day. Management invested over 200 hours and $600 thousand in the creation of these machines, and maintains blueprints and documentation to repair, maintain and create new machines. These investments have enabled the Company to increase revenue and profitability, outperforming industry sales growth by 28x since 2019, and exceeding industry EBITDA by 4.6x since 2021. Revenue in 2024 reached $3.9 million and 2024 PF EBITDA reached 31% or $1.24 million.
The Company sells its components and customized products to over 77 large health care systems, internationally known medical suppliers and multi-billion-dollar pharma and biotechnology customers. Average revenue per customer in 2023 was $67,859, and customer retention is strong, with 87% of revenue from customers who have purchased from the Company for five years or more. FDA (Federal Drug Administration) regulatory compliance is the customer’s responsibility, as customers determine design and specification of all components produced by the Company. Customers are required to obtain and maintain their own FDA approvals, and therefore the Company is shielded from the FDA approval and audit process.
The Company employs an experienced team of 20 full-time employees. Average employee tenure is 6.6 years and 40% of employees have been with the company more than 5 years.
About the Business
- Years in Operation
- 55
- Number of Employees
- 20
- Facilities & Assets
- The Company is located in the Midwest United States, renting an 18,635 square foot office and production facility. Management has invested approximately $294 thousand in leasehold improvements since 2000. Management has also invested more than $4.1 million in machinery, tools, equipment, leasehold improvements, labs, environmental management and quality control equipment, on a Fair Market Value basis. The Company currently holds an estimated $406 thousand in inventory, finished goods and consumables.
- Market Outlook / Competition
- Rising utilization of healthcare services is driving growth in the Medical Instruments and Supplies industry. Manufacturers' vital role in providing essential equipment to healthcare providers has only grown as more people access healthcare services. Manufacturers have also been navigating headwinds related to inflation, supply chain resiliency and currency fluctuations. Still, revenue rose at a CAGR of 0.5% to $103.8 billion over the past five years. The Company realized revenue growth of 11.8% over the past five years, exceeding the industry by 23.6x.
- Opportunities for Growth
- The Company anticipates that it may be able to take advantage of a number of new business development activities which could increase revenues by $4.1 million per year, while increasing profitability by $3.6 million per year, implying a margin of 88% on the new opportunities. Each activity is in alignment with the Company’s core capabilities. These opportunities include expanding the Company’s electropolishing capacity, bringing centerless grinding in-house, and expanding the Companies handle and pointer bending capabilities.
About the Sale
- Seller Motivation
- Having worked for the Company all his life since childhood, the Owner would like
- Transition Support
- The Owner is willing to stay on post-closing to provide a smooth transition, to train the new owner, and to ensure a successful adjustment to new management.
Listing Info
- ID
- 2276408
- Listing Views
- 7230
Attached DocumentsAttachment Disclaimer
Listing ID: 2276408 The information on this listing has been provided by either the seller or a business broker representing the seller. BizQuest has no interest or stake in the sale of this business and has not verified any of the information and assumes no responsibility for its accuracy, veracity, or completeness. See our full Terms of Use. Learn how to avoid scams.
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