Buying a medical supply business in Southwest Florida
Southwest Florida has 44 established medical supply businesses by our count: companies in business at least 15 years that still file with the state every year and aren't part of a larger group. Of those, 59% have been in business 20 years or more. Most will never be listed for sale, and many of their owners have never been asked.
What it takes to own one
Medical supply businesses in Southwest Florida come in every size. Here's what owning one could look like at three levels, from a solid company to one of the leaders, with a small business loan covering most of the price.
- Earns about
- $221,000 a year
- Price about
- $684,000
- Your cash
- $96,000
- Could pay you
- up to $97,000 a year
- Earns about
- $550,000 a year
- Price about
- $1.7 million
- Your cash
- $239,000
- Could pay you
- up to $243,000 a year
- Earns about
- $1.8 million a year
- Price about
- $5.5 million
- Your cash
- $769,000
- Could pay you
- up to $782,000 a year
Earnings are owner earnings: profit plus what the owner pays themselves, before loan payments and taxes. They and the prices are our estimates from public records, not the owners' figures, and we value companies like these at about 3.1 times a year's owner earnings. Your cash covers the down payment and closing costs, and what the business could pay you is what's left after the loan payments and the cushion lenders require. The more cash you bring, the further up you can go.
Age, size and location
Revenue is our estimate from public records, grouped into wide ranges.
| In business | Companies |
|---|---|
| Under 20 years | 18 |
| 20 to 29 years | 14 |
| 30 to 39 years | 11 |
| 40 years or more | 1 |
| Estimated yearly revenue | Companies |
|---|---|
| Under $1M | 10 |
| $1M to $2M | 4 |
| $2M to $4M | 2 |
| $4M to $8M | 1 |
| Over $8M | 3 |
| County | Companies |
|---|---|
| Lee | 19 |
| Manatee | 10 |
| Sarasota | 9 |
| Collier | 5 |
| Other counties | 1 |
| Town | Companies |
|---|---|
| Sarasota | 10 |
| Fort Myers | 9 |
| Bradenton | 5 |
What the best medical supply businesses have in common
- Many accounts and referral sources, with no single clinic, health system or physician driving most sales.
- Sales reps whose accounts would stay with the company if they left.
- Recurring revenue from rentals, resupply programs and standing orders, rather than one-time sales.
- A billing team with few denied claims and documentation that holds up in audits.
- Supplier relationships and pricing a new owner can keep, including any exclusive territory for a product line.
- A rental fleet tracked by serial number, with cleaning and maintenance logged on schedule.
- Current accreditation and licenses with no lapses, and a clean record with Medicare and the Medicaid plans it bills.
- Delivery routes, inventory counts and reorder points kept in a system, not in the owner's head.
What to check before you buy
- Medicare pricing. Medicare's competitive bidding program is coming back as a single nationwide round, with bids due in early 2027 and contracts starting January 1, 2028 (CMS's target dates). It covers continuous glucose monitors, insulin pumps, ostomy and urological supplies and some off-the-shelf braces, and only winning bidders can bill Medicare for those items. If they matter to this business, ask whether the seller is bidding.
- Audits. Audits by Medicare and the plans, denied claims and repayment demands, and whether patient files have valid orders and proof of delivery. Florida Medicaid can hold a buyer liable for overpayments identified by closing (section 409.907(6)).
- Referral arrangements. Payments, free staff or perks for doctors or other referral sources can break federal anti-kickback law. Have a health care attorney read every such contract.
- Customer contracts. For distributors, how much of sales rests on a few customers, and the terms of any contracts with group purchasing organizations or health systems.
- Inventory and fleet. Expired or slow-moving stock, goods held on consignment, and the age and condition of rental equipment.
- Supplier agreements that end, or need the manufacturer's consent, when ownership changes.
Questions to ask the owner
- Which products bring in the most revenue and profit, and how much comes from rentals and resupply compared with one-time sales?
- Who are your largest payers or customers, and are any contracts up for renewal soon?
- Which doctors, hospitals or clinics send you most of your patients or orders?
- How often are claims denied, and have you had any audits or repayment requests?
- Which accreditation and licenses do you hold, and when are the next renewals and surveys?
- Do any manufacturer or distribution agreements need consent to move to a new owner?
- Who runs billing, delivery and the warehouse day to day, and would they stay?
To learn what these companies do, which licenses they need and how ownership works, read our full guide to buying a medical supply business in Florida.
Owning a company in Southwest Florida
The local economy
This region covers Lee, Collier, Charlotte, Sarasota and Manatee counties on the Gulf coast and Hendry, Glades and DeSoto inland: Fort Myers, Cape Coral, Naples, Bonita Springs, Punta Gorda, Port Charlotte, Sarasota, Venice, Bradenton, LaBelle, Clewiston, Moore Haven and Arcadia. The coastal economy runs on people who choose to live or spend the winter here: retirees, seasonal residents, and the construction, real estate, health care, financial and home services that follow them. Tourism, golf and boating add to it.
Inland, the economy is agricultural: sugarcane around Clewiston, citrus, cattle and vegetables, with Immokalee in Collier County a center for farm work. The building trades, pool, landscaping and pest control companies, property managers, medical and dental practices, and marine businesses tend to do well along the coast.
What's different about owning a company here
This is one of Florida's most seasonal markets. From roughly January through April, restaurants, shops and service companies run at full speed. Summers are slower, so look at monthly revenue, not only the yearly total. The coast has taken two major hurricanes in recent years: Ian came ashore at Cayo Costa in Lee County in September 2022, and Milton at Siesta Key in Sarasota County in October 2024. Rebuilding brought a wave of work for contractors that won't last forever, so ask how much recent revenue came from storm repairs. Insurance costs and flood zones weigh on every property.
Housing costs near the coast make hiring hard, especially around Naples. New communities east of Interstate 75 in Lee, Collier, Charlotte and Manatee keep service companies busy.