Looking at a company in the medical equipment distribution & service space. Like a wholesaler for things like MRIs and X-ray machines (and all kinds of ancillary parts), selling to private practices, emergency rooms, vet clinics, etc. Very specialty kind of distributor. Questions I have are:
- what are people's opinions about where that industry/niche is going?
- how to think about Congressional Budget / Medicare/Medicaid exposure and risk?
- what are the hot-button things that I should focus on in due diligence (if I were to go under LOI)

For this business specifically:
- they have done about 800-900k in SDE/adjusted EBITDA (although, I found out a few hundred k is inventory write-offs each year)
- They have exposure to markets all over TX... namely Dallas but also San Antonio and a few others.
- They do both equipment sales as well as technician repairs to equipment (which I really like); 66/33 on revenue for those two divisions. In 2024, equipment sales were down about 20% (apparently the whole industry suffered by about that much with the uncertainty around inflation and election).
- Pretty nice margins for being a distributor. They margins also get lift from the service revenue.

Any thoughts would be greatly appreciated! Thanks!