Management-Buy-Out (MBO) of a Medical Supply Company in Subang Jaya

Management-Buy-Out (MBO) of a Medical Supply Company in Subang Jaya

General Business Activities

xxxxxx was established in 2002 and currently paves the way as one of the market leaders in medical equipment supplies in Malaysia. xxxxxxx’s success can be partly attributed to its strong partnerships with European and American brands, whom allow xxxxxx to act as an authorized representative in the Malaysian market. This officially allows xxxxxx to provide customers with a total solutions package for medical supplies, which includes importing, sales and after care services.

A loyal customer base of over 13 years has given xxxx the opportunity to continuously expand and increase its range of products and services. A key element of securing this customer base rests with the professional after care service provided by xxxxx, steadfastly committed and efficient.

Company Strategy

  • Purpose To be a leader in providing a total solutions package of medical supplies
  • Vision To provide quality products and services that exceed the expectations of our esteemed customers
  • Mission statement To build long term relationships with our customers & clients and provide exceptional customer services by pursuing business through innovation and advanced technology

Core values: We believe in treating our customers with respect and faith; we grow through creativity, invention and innovation; we integrate honesty, integrity and business ethics into all aspects of our business functions

Goals: Regional expansion in the field of medical supplies and develop a strong base of key customers. To continue to increase the assets and investments of the company to support the development of services.

Scope of Work

Supplies of medical/dental imaging equipment to hospitals, universities and private clinics in West Malaysia, with a focus on Klang Valley , Melaka, Johor. xxxxxx is currently engaging in business development activities on the island of Penang.

Financial Considerations

xxxxxx sets realistic but equally challenging sales target every year. These goals take into consideration the global economic outlook, currency exchange rates and the various taxes imposed by the government of Malaysia. xxxxx has met an annual increase of 20% in sales volume, raking in over RM2.8 million in sales in 2015 alone. Access to audited account information is available upon request.

Business Proposal 

I am xxxxxx the Business Development Manager for xxxxxx, I am also a minority shareholder in xxxxxx, I have been working in xxxxxx for 7 years now and I have developed this company from RM250,000 total sales to RM2.8million as of last year total sales. This amount comes from only 1 kind of product which is imaging (e.g. X-Ray Equipment)

I have an idea to change xxxxxx from an Imaging company to a Total medical/dental healthcare service provider. For this Idea we need larger investments but the returns are much higher.

What I am requesting from investor is that you buy out the majority share of the current company boss and sit as a major shareholder, and I’ll continue working here for you to manage the business with more investments I can assure you we can make more money.

The current owners are willing to sell it for RM600,000 this includes all licensing documents as you can see below , Brands that the company holds and also 2 cars worth RM300,000 it’s an Honda Accord and a BMW 320I

Once this is done you’ll hold 80% stake in the company and it would be great if I can hold remainder 30% stake as your good will. I will take this business into another level.

What the investment that I would require is RM1 Million. This amount will be used mainly to purchase stocks from suppliers and I have a method to get better pricing from suppliers if we purchase in Bulk all our equipment’s does not have an expiry date so your investments are safe unlike opening a restaurant or hotel where you need so spend money on renovation and it’s not guaranteed that you’ll make your money back.

Please take note that not all 1 million will be used to purchase stocks, In terms of this investment I would like you to control the funds and I’ll manage the business and grow it for you and for me at the same time.

In the first year of you coming I would like to change to look of xxxxxx, I would like give it a more fresh look, at the same time concentrate on quality and after sales service.


1 comment so far

Capital Team Posted on8:47 am - 05/10/2016

Very interesting deal, contact us to express your interest.