UA-80121869-1

#1 Electronic Dental Health Device for Consumers - Asset Sale

Listing Number: 2401-762296

Description

#1 Electronic Dental Health Device for Consumers – Asset Sale – Huge Potential
30 years in development, this patented (15 issued, 3 pending), fully tested and safe electronic toothbrush has completed 3 prestigious clinical trials, extensive product life testing, and has now surpassed the 2-year real-time warranty pledge. It was conceived and developed to address a serious gum disease problem with 5.3B people suffering globally (WHO). The primary cause is toothbrush “user error” (not brushing correctly or long enough). It eliminates human error and is considered clinically superior to other high-end products on the market due to ease and speed of use as well as efficacy including gum healing technology. It is endorsed by dentists and board-certified periodontists. The larger impact on systemic health is significant.
During the initial test market phase from March 2010-2013 over $22.5M of income was generated with 272,000 units sold. Media spend was $8.5M. Generally rave reviews and over 1M replacement heads have been sold to test market buyers.
Test market user feedback motivated power handle enhancements primarily related to battery replacement operation with induction recharging capability.
Limited production since enhancement enabled an adequate number of users to complete life cycle testing. The product has not received any complaints including no damage to gums or teeth and the return rate is less than 2%. Total income generated since 2014 to complete life cycle testing was about $1.5M.
Investment from 2001 – 2014 was $11.5M on R&D product development, product life testing and production tooling. The product is NOW READY for global launch with the goal to initially capture 3+% of the $1B USA electronic toothbrush market as well as international opportunities.
COGS/Retail price ratio is 6:1 (above average).
Current manufacturing capability using high quality multi-cavity injection mold tooling (part of asset sale) is 50,000 units per month with similar COGS even if made in the USA which is the plan. Production is currently in China. All labor-intensive sub-components will continue to be sourced from off-shore vendors.
Capital expectation for full scale launch over 3 years: $3,000,000 with net EBITDA over the same period projected at almost $15M. Funds to be used for advertising/marketing, inventory, R&D on 3 new products, ADA seal of acceptance and working capital. $33M annual revenue expectation in year 3 and $300M+ year 5 on with identified demographic ready to scale. The founder/president is available to support the transition.
Asset Sale $3,600,000 down payment plus share in future revenues to be negotiated. Minimum Investment Required: $6,600,000.

Listing Details

  • Price: $6,600,000
  • Down Payment: $3,600,000
  • Sellers Discretionary Earnings: $0
  • Total Sales: $24,000,000
  • Location: San Diego County, California

  • Inventory: $200,000
  • FF&E: $1,000,000
  • Employees:
  • Year Established: 1987
  • Reason for Selling: Needs adequate financial banking to maximize growth potential
  • Category: Dental Related
#1 Electronic Dental Health Device for Consumers - Asset Sale

Business Listed By:

Linnea Westlake