The owner of this company used to run a similar medical supply company turning over more than R100m per year. They supply and distribute medical/surgical products and consumables (including diagnostic consumables) primarily to government institutions.
Due to personal circumstances, he lost control of the business and the new owners has not been successful in running it. He thus decided to start out in opposition with them, which he did two years ago. This was not a good time to be in medical supplies as there were very little or no orders issued as a result of the Tembisa Hospital Fraud scandal.
Despite this he was successful in securing some contracts and started on contract supplies of medical consumables. He secured four contracts and are currently awaiting the outcome on a further five contracts, which he is confident of securing.
The business is fully compliant with following: ISO, SAPRA, National Health, National Outsourcing, Tax and other regulatory requirements. The business is a one-man business with sourcing, purchasing, importing, warehousing and distribution outsourced to a third party. All these functions will have to be taken over by the owner as at this stage it is unclear if the third party would be willing to continue providing the services. As the business also operates from their premises, it will have to be relocated.
There are many growth opportunities in the business i,e, sourcing of further contracts, employment of medical representatives to increase the use of products on existing contracts etc.
It was the owner’s intention to grow the business back to the size of his previous business, and he will share his growth plans with the buyer. Unfortunately, medical issues and age have forced him to place the business on the market and retire.
The business is for sale At R6.0m which included R1.0m in inventory. At a Net Profit of R 1.6m in 2026 (limited trading due to Tembisa Hospital) this represents earnings multiple of 3.125 excluding inventory and 3.75 including inventory.
Please note only interested party with the required funds, and willing to provide proof of same, will be entertained. No government funding, IDC. NEF or parties still trying to raise funds will be provided with further information.
