$1.9M EBITDA Multi-Site Sleep Disorder Clinic

XYSL1A - $1.6 Million EBITDA Multi-Site Sleep Disorder Clinic Platform

Broker is pleased to introduce a fast-growing, multi-site sleep disorder clinic in the Pacific Northwest. The revenues are derived from a sleep testing facility, e-commerce sales of equipment, and remote monitoring and compliance to treat various conditions of sleep disorders in both children and adults. In addition, telemedicine physician consultations add an additional ~$500,000 in net profit annually.

The company was established in 2002 as the first independent sleep testing lab in the area. It has grown to become a statewide full-service sleep clinic and sleep equipment supplier with 4 locations and 15 beds. All four centers are accredited by the American Academy of Sleep Medicine and offer the following services:

• Polysomnography aka in-lab sleep studies
• Home Sleep Testing (HST)
• Pediatric Polysomnography
• Multiple sleep latency tests (MSLT) and Multiple Wakefulness tests (MWT)
• CPAP Therapy
• SleepN Follow Up & Remote Monitoring
• Telemedicine Consultation and Diagnosis Navigation Services
• Sales, Service and Compliance of sleep DME Equipment and supplies

The company partners with approximately 200 physician-providers across the state and conducts nearly 2,000 sleep studies annually. About 69% of patients have private insurance, 18% are self-pay, 7% are Medicaid, 2% are Medicare, and 3% are from other sources.

Gross revenues have consistently grown yearly except in 2020 due to COVID restrictions. Still, the company managed to keep up with its revenue goals and have a higher adjusted EBITDA by being proactive in operations management during the pandemic. Gross revenues were $2.8 million in 2021 and are currently on pace to reach $3 million in 2022 with an adjusted EBITDA of $630,000.
With Telemedicine becoming increasingly popular, the Company expects to increase revenues, reach more people to gain additional market share, and remain a market leader. Additionally, the Company plans to expand its product distribution on a national level. The Company has a recognized brand and an excellent reputation with many business awards among the public and referring physicians since 2002, and thus has the competitive advantage of a high barrier of entry for any new business rival due to its strong presence and geographic location.

All staff members are expected to stay post-acquisition. The existing CEO is willing to remain during a mutually agreeable transition period and compensation in a consulting & advisory role. The executive director is ready to stay post-acquisition with the company and fulfill the CEO’s role.

The sellers are seeking a strategic investor who is looking to leverage the existing platform, branding, know-how, and IP assets for further growth and expansion. They will consider all reasonable offers, including an earnout option from a qualified strategic investor.