durable medical equipment & supplies sales, installation ......designed to provide clients with...

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2017 Est. Revenue $3.0M | 2017 Est. EBITDA $800K Founded in 1985, the Company retails and services lift chairs, leisure and hospital beds, power wheelchairs, scooters, Continuous Positive Airway Pressure (CPAP) or Bilevel Positive Airway Pressure (BIPAP) machines and supplies, nebulizers, home and portable oxygen equipment, braces, daily aids, compression hose, incontinence products, rollators, walkers, wheelchairs, and other products; custom and standard options are available. The Company operates through eight major internal profit centers: hospice products and services (26% of 2016 revenue), oxygen and supplies (15%), PAP and supplies (8%), power mobility systems (8%), wheelchairs (5%), lift chairs (5%), beds (3%), and other products (30%). The Company targets various market segments in the Southeast US. It maintains a database of approximately 15,000 customers (7,000 active), and over 50% of revenue comes from recurring active customer orders. The customer base is diversified and Medicare payments represented only 13% of revenue during 2016. The Company also offers pick-up and delivery services within 50-miles of each location, a 24-hour emergency service, evaluation of the client's home and workplace for wheelchair accessibility, and other solutions. To ensure efficient operations, the customer database and sales systems are completely integrated. The Company employs 25 full-time personnel, including its shareholder. The Company’s professionals include respiratory therapist s, customer service professionals, billing specialists, and repair technicians. The Company operates from two locations. The headquarters facility comprises 10,000 square feet, and is utilized for office and warehouse purposes. The facility is owned by the Company and can accommodate significantly higher revenues without major facility improvements or capital expenditures. Additionally, the Company operates a satellite facility, which is comprised of 5,000 square feet, and is utilized for office and warehouse purposes. The satellite facility is leased from a third party at the market rate. For more information, please sign the Non-Disclosure Agreement DISCLAIMER: All information contained in this document has been provided by the subject company to Generational Equity and while believed to be correct has not been verified. Accordingly, Generational Equity makes no representations or warranties as to accuracy and truthfulness of such information. The recipient hereof acknowledges that Generational Equity shall not be liable for any loss or injury suffered by said recipient in any way connected to the delivery by Gen- erational Equity of this document. At all times Generational Equity and its affiliate network members is an agent for the seller and not for the buyer. Generational Equity’s fees are paid by the seller. Sam Sumner, Senior M&A Advisor Tel: (205) 870-1717 Email: [email protected] Generational Equity, LLC 14241 Dallas Parkway, Suite 700 Dallas, TX 75254 Client #59593 www.Generational.com I www.DealForce.com Investment Considerations Proprietary Expertise In addition to the active principal’s extensive mobility and medical equipment experience, the Company’s key employees also h ave significant industry expertise. This wealth of experience and expertise in niche systems provides the Company with a significant intangible asset and advantage over many competitors. Strong Customer Relationships The Company has strong ties to clients due to its industry expertise and excellent customer service. Specifically, the Compan y’s database includes approximately 15,000 retail customers. In addition, the Company provides service to approximately 10 hospices, 20 to 30 assisted living facilities, and other commercial accounts. The diversified customer base helps ensure that the Company will not be significantly impacted by the loss of a single account. Facility Capabilities & Qualifications The Company operates from two strategic facilities that total 15,000 square feet. The Company anticipates capitalizing on this excess capacity during the pro forma period. Additionally, the Company’s structure, strategic geographic locations, immediate product availability, and inte grated management systems are designed to provide clients with interdisciplinary durable medical equipment supply solutions. Orders range from under $100 to over $4,000. Durable Medical Equipment & Supplies Sales, Installation, & Repair Services Located in Alabama - Two Locations Recast Historical and Pro Forma Statement of Income ($000) Historical Est. Projected 2014 2015 2016 2017 2018 2019 2020 2021 2022 Sales 3,052 3,115 2,857 3,000 3,100 3,200 3,300 3,400 3,500 % Growth -- 2.1% -8.3% 5.0% 3.3% 3.2% 3.1% 3.0% 2.9% Gross Profit 2,301 2,442 2,316 2,430 2,511 2,598 2,680 2,768 2,852 % of Sales 75.4% 78.4% 81.1% 81.0% 81.0% 81.2% 81.2% 81.4% 81.5% EBITDA 637 745 733 780 813 855 890 934 974 % of Sales 20.9% 23.9% 25.7% 26.0% 26.2% 26.7% 27.0% 27.5% 27.8%

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Page 1: Durable Medical Equipment & Supplies Sales, Installation ......designed to provide clients with interdisciplinary durable medical equipment supply solutions. Orders range from under

2017 Est. Revenue $3.0M | 2017 Est. EBITDA $800K

Founded in 1985, the Company retails and services lift chairs, leisure and hospital beds, power wheelchairs, scooters, Continuous Positive Airway Pressure

(CPAP) or Bilevel Positive Airway Pressure (BIPAP) machines and supplies, nebulizers, home and portable oxygen equipment, braces, daily aids, compression

hose, incontinence products, rollators, walkers, wheelchairs, and other products; custom and standard options are available. The Company operates through

eight major internal profit centers: hospice products and services (26% of 2016 revenue), oxygen and supplies (15%), PAP and supplies (8%), power mobility

systems (8%), wheelchairs (5%), lift chairs (5%), beds (3%), and other products (30%).

The Company targets various market segments in the Southeast US. It maintains a database of approximately 15,000 customers (7,000 active), and over 50% of

revenue comes from recurring active customer orders. The customer base is diversified and Medicare payments represented only 13% of revenue during 2016.

The Company also offers pick-up and delivery services within 50-miles of each location, a 24-hour emergency service, evaluation of the client's home and

workplace for wheelchair accessibility, and other solutions. To ensure efficient operations, the customer database and sales systems are completely integrated.

The Company employs 25 full-time personnel, including its shareholder. The Company’s professionals include respiratory therapists, customer service

professionals, billing specialists, and repair technicians. The Company operates from two locations. The headquarters facility comprises 10,000 square feet, and

is utilized for office and warehouse purposes. The facility is owned by the Company and can accommodate significantly higher revenues without major facility

improvements or capital expenditures. Additionally, the Company operates a satellite facility, which is comprised of 5,000 square feet, and is utilized for office

and warehouse purposes. The satellite facility is leased from a third party at the market rate.

For more information, please sign the Non-Disclosure Agreement

DISCLAIMER: All information contained in this document has been provided by the subject company to Generational Equity and while believed to be correct has not been verified. Accordingly, Generational Equity makes no representations or warranties as to accuracy and truthfulness of such information. The recipient hereof acknowledges that Generational Equity shall not be liable for any loss or injury suffered by said recipient in any way connected to the delivery by Gen-erational Equity of this document. At all times Generational Equity and its affiliate network members is an agent for the seller and not for the buyer. Generational Equity’s fees are paid by the seller.

Sam Sumner, Senior M&A Advisor Tel: (205) 870-1717 Email: [email protected]

Generational Equity, LLC 14241 Dallas Parkway, Suite 700 Dallas, TX 75254

Client #59593 www.Generational.com I www.DealForce.com

Investment Considerations

Proprietary Expertise

In addition to the active principal’s extensive mobility and medical equipment experience, the Company’s key employees also have significant industry

expertise. This wealth of experience and expertise in niche systems provides the Company with a significant intangible asset and advantage over many

competitors.

Strong Customer Relationships

The Company has strong ties to clients due to its industry expertise and excellent customer service. Specifically, the Company’s database includes

approximately 15,000 retail customers. In addition, the Company provides service to approximately 10 hospices, 20 to 30 assisted living facilities, and other

commercial accounts. The diversified customer base helps ensure that the Company will not be significantly impacted by the loss of a single account.

Facility Capabilities & Qualifications

The Company operates from two strategic facilities that total 15,000 square feet. The Company anticipates capitalizing on this excess capacity during the pro

forma period. Additionally, the Company’s structure, strategic geographic locations, immediate product availability, and integrated management systems are

designed to provide clients with interdisciplinary durable medical equipment supply solutions. Orders range from under $100 to over $4,000.

Durable Medical Equipment & Supplies Sales, Installation, & Repair Services

Located in Alabama - Two Locations

Recast Historical and Pro Forma Statement of Income ($000)

Historical Est. Projected

2014 2015 2016 2017 2018 2019 2020 2021 2022

Sales 3,052 3,115 2,857 3,000 3,100 3,200 3,300 3,400 3,500

% Growth -- 2.1% -8.3% 5.0% 3.3% 3.2% 3.1% 3.0% 2.9%

Gross Profit 2,301 2,442 2,316 2,430 2,511 2,598 2,680 2,768 2,852

% of Sales 75.4% 78.4% 81.1% 81.0% 81.0% 81.2% 81.2% 81.4% 81.5%

EBITDA 637 745 733 780 813 855 890 934 974

% of Sales 20.9% 23.9% 25.7% 26.0% 26.2% 26.7% 27.0% 27.5% 27.8%