Medical Equipment Repair and Maintenance Company
This article outlines a strategic path for acquiring and expanding a specialized medical equipment repair and preventive maintenance company focused on non-hospital outpatient providers, ambulatory surgical centers (ASCs), dental offices, and physical therapy clinics. The company provides on-site and depot repair for autoclaves, centrifuges, ultrasound machines, exam tables, and surgical tools, along with recurring compliance-based calibration and inspection services.
The business generates $3.9 million in annual revenue with $815,000 in adjusted EBITDA. Its value lies in long-standing service agreements, relationships with regional manufacturers and distributors, and deep operational expertise in highly regulated healthcare environments. Roughly 60% of revenue is derived from annual maintenance contracts (AMCs) with healthcare practices, while 25% comes from reactive repairs and the remaining 15% from equipment sales, parts distribution, and consulting on new office buildouts.
The company is an ideal SBA 7(a) acquisition target due to its recurring revenue model, recession-resilient client base, high-margin services, and well-defined route logistics. New ownership can scale by partnering with manufacturers for warranty and overflow repairs, expanding into higher-acuity medical devices, and building a field technician training program to support regional growth.
Proposed SBA 7(a) Deal Structure
The business can be acquired using a well-leveraged SBA structure supported by seller participation and growth-linked incentives:
Purchase Price: $3.25 million (3.99x EBITDA)
SBA Loan: $2.4375 million (75%)
Buyer Equity Injection: $325,000 (10%)
Seller Financing (Subordinated): $487,500 (15%) amortized over 6 years, 12-month interest-only
Protections and performance bonuses:
25% clawback on seller note if more than 15% of AMC clients cancel within 6 months post-closing
Seller earns a bonus if buyer secures a manufacturer servicing partnership worth $200K+ in first 12 months
Seller remains on for 9 months as technical director and key account liaison
Client Profile and Revenue Segmentation
Customer categories:
Private medical practices (family med, podiatry, ENT): 28%
Ambulatory surgery centers (ASCs): 24%
Dental offices and orthodontic clinics: 20%
Physical therapy and chiropractic offices: 12%
Veterinary and alternative health clinics: 8%
Equipment distributors and resellers: 8%
Revenue types:
Annual maintenance contracts (AMCs): $2.34M
Time-and-materials (T&M) repair work: $975K
Equipment and parts sales: $585K
Most AMCs include:
Two site visits per year
Calibration and safety inspections
Minor preventive repairs (lubrication, alignment, firmware checks)
Discounted T&M rates on non-covered services
Contracts average $1,800–$4,500 per year depending on device inventory and service frequency. All contracts are auto-renewing with a 60–90 day notice period.
No single client represents more than 4.1% of total revenue. Top 50 clients make up 61%. Most clients have remained active for 5+ years and were referred by their original equipment manufacturer (OEM) or medical distributor.
Field Service Operations and Technician Model
Team:
7 field service engineers (FSEs), each covering a region
1 depot repair specialist (bench work)
2 parts/order coordinators
1 dispatcher and route scheduler
1 regulatory compliance and documentation officer
1 general manager (non-technical)
Technicians are trained in:
Electrical diagnostics and soldering
Calibration against manufacturer tolerances
OSHA and FDA compliance reporting
Infection control and sterilization protocols
All technicians hold AAMI BMET certifications or equivalent experience. Clients are serviced in person with tablet-based service logs, and follow-ups are scheduled via CRM (Field Nation + custom API overlay).
Post-acquisition technician strategy:
Launch internal technician training academy (6-week paid program)
Implement tiered pay structure with bonuses for customer satisfaction and first-time fix rates
Build pipeline of FSEs via trade schools and veteran retraining programs
Facility, Tools, and Inventory
Location:
6,200 sq ft service depot and office facility
Bench repair lab (autoclaves, centrifuges, power tables)
Parts storage area (valued at ~$320K)
Admin and dispatch area
Training and QA room
Fleet:
6 service vans (stocked with repair kits and parts bins)
GPS-tracked and logged for insurance and compliance purposes
FMV: ~$270,000 (owned)
CapEx forecast:
Add 2 vans for expansion: $90K (can be leased)
Replace aging calibration equipment: $15K
Upgrade CRM and client interface portal: $10K
Sales and Marketing
Current sales funnel:
Referrals from equipment distributors and OEMs
Google Ads with “medical equipment repair near me” campaigns
Direct outreach to group practice administrators and ASC procurement teams
Trade show participation (dental, ortho, ambulatory care)
Marketing spend: ~$3,800/month
Post-close marketing opportunities:
Launch “new practice startup” concierge service bundling equipment consulting and maintenance setup
Secure manufacturer-authorized repair relationships (Fujifilm, Tuttnauer, Midmark, etc.)
Develop private-label AMC packages for dental service organizations (DSOs)
Acquire Yelp-optimized local repair shops and absorb into field routes
Financial Summary
Revenue: $3.9M
COGS (labor, parts, tech tools): $2.09M
Gross Profit: $1.81M
SG&A: $995K
Adjusted EBITDA: $815K (20.9%)
Margin analysis:
AMC contracts: 65%+
Reactive repairs: 55–60%
Equipment and parts resale: 35–45%
Revenue is evenly distributed throughout the year with seasonal bumps tied to compliance deadlines and accreditation cycles (JCAHO, AAAHC, OSHA inspections).
Receivables: Average 27 days. Prepayment required for non-contracted residential or ad-hoc clients.
Legal and Compliance
FDA-compliant servicing logs maintained for high-risk devices
Calibrators and inspection tools tested and certified annually
Fully insured: $2M GL, $1M E&O, $1M umbrella, $1M workers comp
No active litigation, labor complaints, or OSHA violations
Contracts are assignable upon ownership change with notice provisions. Buyers must continue to meet OEM specifications to retain referral privileges.
Working Capital and Transition Budget
Payroll float: $80K–$100K
CRM and portal upgrade: $10K
New van leases: $45K–$60K
Seller consulting: $35K
Trade show sponsorships and DSO marketing: $20K
Ideal Buyer Profiles
Medical industry entrepreneurs with device servicing or IT backgrounds
Field service operators expanding into healthcare verticals
PE-backed platforms looking for route-based recurring B2B income
Former healthcare equipment reps seeking operational control
Post-Close Execution Plan
Secure current OEM referral partners through continuity meetings
Launch technician hiring initiative and training program to expand territory
Audit AMC pricing and identify upsell opportunities for additional coverage
Pursue private-equity backed DSO and ASC groups for custom service bundles
Target acquisition of solo operator repair shops with 1–2 techs and <500 clients
Conclusion
This medical equipment repair and maintenance business offers recurring contractual revenue, recession-resilient customers, and deep OEM alignment. With SBA 7(a) financing, a qualified buyer can step into a compliant, well-organized service operation with strong margins and predictable income. The field-service playbook is mature, but the growth potential lies in expanding territory, adding techs, and pursuing white-label and private-equity driven healthcare groups. This deal represents a rare blend of technical service precision, B2B stickiness, and scalable logistics.
