Medical Consumables With Government Contracts For Sale

Description

The owner of this company previously ran a similar medical supply business with annual turnover exceeding R100 million. The business supplies and distributes medical and surgical products, including diagnostic consumables, primarily to government institutions.Due to personal circumstances, the previous business was lost under new ownership, which has not been successful in its operations. The owner subsequently re-entered the sector and established a new operation approximately two years ago. However, the timing has been challenging due to reduced government procurement activity following the Tembisa Hospital fraud scandal.Despite this, the business has secured four contracts and is awaiting outcomes on a further five tenders, which the owner believes have a strong likelihood of success.The business is fully compliant with ISO, SAPRA, National Health, National Outsourcing, tax, and other regulatory requirements.It currently operates as a lean, owner-managed structure, with sourcing, procurement, importing, warehousing, and distribution outsourced to a third-party service provider. These functions may need to be transitioned or internalised, as continued support from the third party is not guaranteed. The business also operates from the current premises, which may require relocation.There are significant growth opportunities, including securing additional government contracts and expanding product utilisation through medical representatives and key account development.The owner’s intention was to scale the business back to its previous size, but due to medical issues and age, the decision has been made to sell and retire.Asking Price: R6.0 million, including R1.0 million in inventory.At a net profit of approximately R1.6 million (2026, limited trading period), this reflects an earnings multiple of 3.125 excluding inventory and 3.75 including inventory.Only buyers with proven financial capability will be considered. No government funding, IDC, NEF, or fund-raising buyers will be engaged.