Tech - 9011: Manufacturer of Products for Pressure Sores

Opportunity to Purchase or Partner with Established Pioneer in the Field

 

The Company was founded over 35 years ago by an orthopedic surgeon and sells a number of products for the pressure injuries (bed sores) and wound management products. The Company was a pioneer in this space and holds several patents. The products include that include offloading Boots for heel ulcers (offloading removes stress from the area), patient turning systems, positioners and skin breakdown prevention products, and wound measurement systems. In the offloading boots area, the Company offers innovative technologies to help patients.

GROWTH PROSPECTS

The Company can really grow and prosper under a buyer with more resources and marketing savvy and someone who can offer complementary products. It has also been spread thin in the development efforts of another product (an alerting, wearable product for proper care of pressure sores), of its sister division (see http://itcompaniesforsale.com/#4068)
 
Just a few years ago, it had revenue of $6 million and was very profitable. But it lost some of the market share and revenue as the hospitals shifted to Group Purchasing Organizations (GPOs) which offer a wide variety of products. Somehow, the Company did not quite adjust to this scenario. Additionally, there was more competition from larger companies that came up with competing and often products that were copied from the Company.

However, the Company has turned a corner in 2016. In the USA, the Company won contracts with three important GPOs, and one in Canada. Over a hundred new hospitals have signed with the Company and sales are just beginning. It expects its sales to pick up significantly from these agreements. Additionally, it is making a strong push in overseas markets of UK, Australia, New Zealand, and Japan.

A buyer with more resources and product portfolio can continue to grow the North American market as well as International market.

FINANCIALS

Annual Revenue: $3 million (expected to increase significantly due to new GPO contracts). EBITDA: $343K.

REASON FOR SALE

The founder/owner is in his early eighties and wants to make sure that the Company goes into good hands and prospers.

SALE PRICE

The listing price for this business is $2.9 million. As indicated, the buyer has another division also that has developed an alerting system for proper care of pressure sores and has shown exceptional results in clinical trials (see http://itcompaniesforsale.com/#4068). Seller is also willing to sell part or all of that division as well.

Do contact us for more information on this technology and to connect with our client. Mention listing number Tech-9091.

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