BUSINESS PROFILE
UNIQUE SERVICE BUSINESS SUPPORTING AVAILABILITY AND “PORTABILITY”
OF HEALTHCARE LIVING WILLS AND ADVANCE DIRECTIVES
Headquarters:
New Jersey (but this location is not critical to the company. The business is can be relocated virtually anywhere in or out of the State of New Jersey).
Years Established:
1996.
Under Present Ownership:
1996.
Gross Sales:
$ 265,900 (2009)
Cash Flow:
$ 14,300 (2008)
TBD (2009)
Number of Employees:
Owner/Seller plus three (3) full-time and one (1) part-time.
Asking Price:
$1,000,000.00 – Rationale in Summary Description below.
Reason for Selling:
The Seller is a private practice physician. The Seller has determined he does not have the time, and perhaps some of the skill sets, necessary to develop the full potential of the company.
Summary Description:
The company operates a national database for advance directives, organ donor documents and information, supporting patients’ rights by making advance directives (medical proxies and Living Wills) easily accessible when needed by healthcare providers. The documents can be securely accessed at any time via the internet.
The system that supports the service is a proprietary software database capable of holding up to 200 million documents. The company has obtained a “System and Method” patent on the process plus holds a Service Mark registration on its logo and four (4) other Service Mark registrations for “trade slogans” that define the company’s services.
The company’s services are currently marketed through four channels: Governmental contracts, Hospital Systems, “Partners,” and to Individuals. Currently the company has three states and two hospital systems under contract; these two channels represent the company’s most significant growth potential.
The company is offered on a “cost-to-replicate” basis of $1,000,000, based on the Seller’s investment to develop the company to where it is today as up-and-running business, including the cost to develop and implement the three state and two hospital system contracts. Historical revenue and cash flow are not indicative of the intrinsic value of this opportunity. A buyer needs to evaluation the Company with a look-forward to the future in considering the opportunity and its fair value.


Beyond general managerial skills, a prospective Buyer should consider these attributes:
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Marketing Skills: Be able to take the core business to the next level by growing each of the market channels.
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Negotiating Skills: Capable of negotiating through the thicket of governmental and hospital system procurement regulations to obtain and implement additional contracts.
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Technology: Ability to manage technology in a changing environment so the service and software is kept up-to-date. Related to this is the ability to customize the service to meet the requirements of state governments, hospital systems, and “Partners.”
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Finances: Beyond the need for capital to grow the company, there is a need to develop a financial structure to manage a growing business.
Transition of the company to a Buyer from the Seller will be orderly. Under the right situation, separately negotiated, the Seller is willing to remain a consultant to and spokesperson for the company, in a role akin to Dr. C. Everett Koop for WebMD and Attorney Robert Shapiro for Legal Zoom. Such a relationship would be of immeasurable ongoing value to the company because the Seller would not only be speaking about the benefits of the company’s services as a doctor but also as the “founder” of the company.