Medical Consumables With Government Contracts For Sale

Description

Business type: medical and surgical product supply and distribution

Current operating history: approximately 2 years

Primary customer sector: government institutions

Current structure: owner-managed

Products

• Medical products
• Surgical products
• Diagnostic consumables

Contracts and tenders

Secured contracts: 4

Tenders awaiting outcome: 5

Additional government contract opportunities: active

Compliance

ISO compliance: stated as in place

SAPRA compliance: stated as in place

National Health compliance: stated as in place

National Outsourcing compliance: stated as in place

Tax compliance: stated as in place

Other regulatory requirements: stated as in place

Operations

Sourcing: outsourced

Procurement: outsourced

Importing: outsourced

Warehousing: outsourced

Distribution: outsourced

Third-party service provider: currently used

Future third-party support: not guaranteed

Internalisation of outsourced functions: possible requirement

Current premises: in use

Relocation: may be required

Owner experience

Previous medical supply business: operated by the current owner

Previous annual turnover: more than R100 million

Financial information

Asking price: R6,000,000

Inventory included: R1,000,000

2026 net profit: approximately R1.6 million

2026 trading period: limited

Earnings multiple excluding inventory: 3.125

Earnings multiple including inventory: 3.75

Expansion options

• Additional government contracts
• Medical representative network
• Key account development
• Additional product utilisation
• Internal warehousing and distribution

Reason for sale

Owner plans to retire

Buyer requirements

Proven financial capability: required

Government funding buyers: not considered

IDC funding buyers: not considered

NEF funding buyers: not considered

Fund-raising buyers: not considered