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Information Memorandum

FOUNTAIN HEAD MARKETING, INC.


D.B.A. ROMET

CONFIDENTIAL: NOT FOR DISTRIBUTION


BEFORE READING THIS INFORMATION MEMORANDUM IT IS IMPORTANT THAT YOU FIRST READ THIS DISCLAIMER

THIS INFORMATIONAL MEMORANDUM IS BEING PROVIDED FOR INFORMATION ONLY AND DOES THIS MEMORANDUM IS BEING ISSUED BY THE COMPANY WHO HAS AUTHORIZED ITS ISSUE.
NOT CONSTITUTE AN OFFER TO SELL OR SOLICITATION OF AN OFFER TO BUY SECURITIES OF NOTICE IS GIVEN THAT:
FOUNTAIN HEAD MARKETING, INC.. (THE "COMPANY") IN ANY JURISDICTION. NO SECURITIES ARE
BEING OFFERED HEREBY AND NO REPRESENTATION IS MADE REGARDING THE REGISTRATION OF THE INFORMATION RELATING TO THE COMPANY CONTAINED HEREIN HAS BEEN PROVIDED BY THE
ANY SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF COMPANY. THIS INFORMATION HAS NOT BEEN INDEPENDENTLY VERIFIED BY BENCHMARK OR
ANY STATE OR FOREIGN JURISDICTION. ANY OTHER PARTY.

NO INFORMATION CONTAINED IN THIS MEMORANDUM SHOULD BE TAKEN AS CONSTITUTING THE COMPANY DOES NOT UNDERTAKE TO ACCEPT THE HIGHEST, OR ANY, OFFER AND RESERVES
AN OFFER OR INVITATION TO SUBSCRIBE FOR OR TO PURCHASE, SELL OR HOLD ANY INTEREST IN, THE RIGHT TO ACCEPT OR REJECT ANY OFFER FOR ANY REASON. THE COMPANY RESERVES THE
OR GOODWILL OR ASSETS OF, THE COMPANY OR ANY OTHER ENTITY. THE INFORMATION RIGHT TO NEGOTIATE WITH ONE OR MORE POTENTIAL PARTIES AT ANY TIME AND TO ENTER INTO
CONTAINED HEREIN IS SUBJECT TO UPDATING, AMENDMENT AND VERIFICATION. IT SHOULD NOT A DEFINITIVE AGREEMENT FOR A TRANSACTION INVOLVING THE COMPANY WITHOUT PRIOR
BE RELIED UPON BY ANY PERSONS FOR ANY PURPOSE. NOTHING IN THIS MEMORANDUM OR IN NOTICE TO THE RECIPIENT. THE COMPANY AND BENCHMARK RESERVE THE RIGHT TO TERMINATE,
THE MATERIALS REFERRED TO HEREIN CONSTITUTES OR IS INTENDED TO CONSTITUTE FINANCIAL AT ANY TIME, FURTHER PARTICIPATION IN THE INVESTIGATION AND PROPOSED PROCESS BY ANY
OR OTHER ADVICE AND YOU SHOULD NOT ACT UPON ANY INFORMATION CONTAINED IN THIS PARTY, TO MODIFY ANY OF THE RULES OR PROCEDURES SET FORTH HEREIN OR ANY OTHER
MEMORANDUM OR IN THE RELEVANT MATERIALS WITHOUT FIRST CONSULTING A FINANCIAL, PROCEDURES WITHOUT PRIOR NOTICE OR ASSIGNING ANY REASON THEREFORE OR TO
LEGAL OR OTHER PROFESSIONAL ADVISER. TERMINATE THE PROCESS CONTEMPLATED HEREBY. THEY RESERVE THE RIGHT TO TAKE ANY
ACTION, WHETHER IN OR OUT OF THE CONDUCT OF THE COMPANYS BUSINESSES, OR PROCESS
EACH RECIPIENT, BY ACCEPTING DELIVERY OF THIS MEMORANDUM, AGREES TO HOLD THE CONTEMPLATED BY THIS MEMORANDUM.
COMPANY, ITS OFFICERS, MEMBERS AND MANAGERS OR AND DIRECTORS, TOGETHER WITH
BENCHMARK INTERNATIONAL, ITS OFFICERS, EMPLOYEES, MEMBERS AND MANAGERS, HARMLESS NEITHER THE RECEIPT OF THIS MEMORANDUM NOR ANY INFORMATION (WHETHER WRITTEN,
AGAINST ANY CLAIMS, COSTS, EXPENSES OR DAMAGES THEY MAY SUFFER AS A RESULT OF THEIR ELECTRONIC OR ORAL) MADE AVAILABLE IN CONNECTION WITH THE PROPOSED SALE OF THE
RELIANCE UPON THE CONTENTS OF THIS MEMORANDUM. REPRODUCTION OF THIS COMPANY OR ITS ASSETS CONSTITUTES , OR IS TO BE TAKEN AS CONSTITUTING, THE GIVING OF
MEMORANDUM IS PROHIBITED. INVESTMENT ADVICE BY BENCHMARK, ITS OFFICERS, MEMBERS, OR EMPLOYEES.

NO PART OF THE CONTENTS OF THIS MEMORANDUM HAS BEEN APPROVED, DISAPPROVED OR ONLY THOSE PARTICULAR REPRESENTATIONS AND WARRANTIES WHICH MAY BE MADE IN A SALE
RECOMMENDED BY THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES AND PURCHASE AGREEMENT (WHICH WILL NOT CONTAIN ANY REPRESENTATIONS OR
COMMISSION NOR HAVE ANY OF SUCH AUTHORITIES PASSED UPON THE ACCURACY OR WARRANTIES AS TO THIS MEMORANDUM) WHEN AND IF IT IS FINALLY EXECUTED, AND SUBJECT TO
ADEQUACY OF THIS MEMORANDUM. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL SUCH LIMITATIONS AND RESTRICTIONS AS MAY BE AGREED, SHALL HAVE ANY LEGAL EFFECT.
OFFENSE. ACCORDINGLY NO REPRESENTATIONS OR WARRANTIES ARE GIVEN IN, OR IN RESPECT OF, THIS
MEMORANDUM OR ANY FURTHER INFORMATION SUPPLIED.
IN ADDITION TO THE HISTORICAL INFORMATION CONTAINED HEREIN, THIS MEMORANDUM
CONTAINS FORWARD-LOOKING STATEMENTS THAT INVOLVE RISK AND UNCERTAINTIES. EITHER BENCHMARK OR THE MANAGEMENT OF THE COMPANY WILL ACT AS A PRIMARY POINT OF
STATEMENTS CONTAINED IN THIS MEMORANDUM, INCLUDING, WITHOUT LIMITATION, CONTACT FOR THE RECIPIENT UNLESS SPECIFICALLY AGREED IN WRITING, UNDER NO
STATEMENTS CONTAINING THE WORDS BELIEVE, ARE OF THE OPINION, ANTICIPATE, CIRCUMSTANCES SHOULD RECIPIENT CONTACT OTHER INDIVIDUALS OR EMPLOYEES OF THE
ESTIMATE, EXPECT, AND WORDS OF SIMILAR IMPORT, CONSTITUTE FORWARD-LOOKING COMPANY, OR VISIT ANY SITES USED BY THE COMPANY.
STATEMENTS. FORWARD-LOOKING STATEMENTS ARE NECESSARILY BASED UPON CERTAIN
ESTIMATES AND ASSUMPTIONS. ANY ASSUMPTIONS SHOULD NOT BE CONSTRUED TO BE RECIPIENTS OF THIS MEMORANDUM IN JURISDICTIONS OUTSIDE THE UNITED STATES SHOULD
INDICATIVE OF THE ACTUAL EVENTS WHICH WILL OCCUR. ACTUAL EVENTS ARE DIFFICULT TO INFORM THEMSELVES ABOUT AND OBSERVE ALL APPLICABLE LEGAL REQUIREMENTS IN THEIR
PREDICT AND MAY DEPEND UPON FACTORS THAT ARE BEYOND THE CONTROL OF THE COMPANY JURISDICTIONS. IN PARTICULAR, THE DISTRIBUTION OF THIS MEMORANDUM IN CERTAIN
AND ITS MANAGEMENT. CERTAIN ASSUMPTIONS HAVE BEEN MADE TO SIMPLIFY THE JURISDICTIONS MAY BE RESTRICTED BY LAW AND, ACCORDINGLY, RECIPIENTS REPRESENT THAT
PRESENTATION AND, ACCORDINGLY, ACTUAL RESULTS MAY DIFFER, PERHAPS MATERIALLY, FROM THEY ARE ABLE TO RECEIVE THIS MEMORANDUM WITHOUT CONTRAVENTION OF ANY UNFULFILLED
THOSE PRESENTED. SOME IMPORTANT FACTORS WHICH COULD CAUSE REGISTRATION REQUIREMENTS OR OTHER LEGAL RESTRICTIONS IN THE JURISDICTION IN WHICH
ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE IN ANY FORWARD-LOOKING STATEMENTS THEY RESIDE OR CONDUCT BUSINESS.
INCLUDE, AMONG OTHERS, THE FOLLOWING: FINANCIAL, MARKET, ECONOMIC OR LEGAL
CONDITIONS. RECIPIENTS SHOULD CONDUCT THEIR OWN ANALYSIS, USING SUCH ASSUMPTIONS
AS THEY DEEM APPROPRIATE, AND SHOULD FULLY CONSIDER OTHER AVAILABLE INFORMATION.

2
Contents

EXECUTIVE SUMMARY 4

FINANCIAL PERFORMANCE 5

BACKGROUND & OWNERSHIP 6

PRODUCTS 8

CUSTOMERS/DISTRIBUTORS 11

OPERATIONS 14

MARKET & OPPORTUNITIES 16

CONCLUSION 18

Fountain Head Marketing, Inc. 3


Executive Summary
BUSINESS DESCRIPTION MARKET CURRENTLY SERVED
Fountain Head Marketing, Inc., doing business as Romet, is a Patients who have had laryngectomies or damage to the throat
manufacturer and distributor of electrolarynx devices to with 75% of sales to international markets.
laryngectomees worldwide. The company also distributes larynx and
stoma accessories. Fountain Head Marketing, Inc. will herein after be
referred to as Fountain Head. REAL ESTATE
The company is relocatable. It is currently headquartered out of the
HEADQUARTERED owners private residence.

San Antonio, Texas


OWNERSHIP
Shareholder seeks to sell the business to de-risk and cash out. The
WEBSITE owner is willing to remain with the company as needed to allow for
www.romet.us a smooth transition.

KEY FEATURES OPPORTUNITIES


Over 40 years in business Bring design and manufacturing in-house
Worldwide brand awareness Explore alternative suppliers for larynx
Cutting edge larynx devices that are lightweight and durable Increase focus in growing US, Japan, and China
High quality products for best value Invest in sales and marketing
32 distributors in different countries Sell to key hospitals and medical centers
Low overhead costs Sell to larger medical device distributors in the ENT (Ear, Nose,
Throat) markets

Fountain Head Marketing, Inc. 4


Background & Ownership
OVERVIEW
Fountain Head is a Texas-based corporation established in 2009 by Tommy Dodson. Romet, originally founded in Rhode Island in 1979,
was acquired by Fountain Head in 2009. For nearly four decades, Romet has provided electronic larynx devices to thousands of
laryngectomees worldwide. Laryngectomies are typically performed because of throat cancer or damage to the larynx and following
surgery, a patient is unable to speak because the vocal chords have been removed and cannot create vibrations. The Romet electronic
larynx helps produce the vibrations that imitate the vocal chords and allows the user to emit clear and comprehensible sounds.
Mr. Dodson served four years in the Navy and has been involved in the retail and wholesale industries since his first job at a mens clothing
store. Since then, he has gained experience in several other businesses including the manufacturing of garments, writing instruments,
luggage, and medical equipment. Mr. Dodson is a hard working entrepreneur and well networked with relationships all around the world.
He eventually took over ownership of Romet in 2009 after his friend, the previous owner of the company, passed away. Mr. Dodson
acquired the business with limited funds and under the registered name of Fountain Head Marketing, Inc. He moved the business to San
Antonio with the intention of operating it with as little overhead as possible. Mr. Dodson along with his wife, Ruth, run the business entirely
from their home in San Antonio. Over the last several years, Mr. Dodson has grown the business and has sold its products in over 32
countries. He feels that it is time to sell the business to de-risk and seeks an acquirer that has the necessary infrastructure and marketing
capabilities to take Romet to a higher level. He is willing to remain with the company as needed to allow for a smooth transition and ensure
that all relationships are passed to the acquiring party. Fountain Head Marketing will hereinafter be referred to as Romet.

REGISTRATION NAME % POSITION

Legal Name Fountain Head Marketing, Inc.


Tommy Tom Dodson 100 President
FEI/EIN Number 26-2386157
Incorporation Date 04/11/2008 REGISTRATION
ROMET TRADEMARK DATE FILED
DATE
Company Structure S Corporation (election made
1/1/10) Active
12/21/2010 8/2/2011
Tax Structure Pass through Serial #: 85202532

Fountain Head Marketing, Inc. 5


Financial Performance
Romet has a distinct presence in the international market. The company provides the electronic larynx product as well as
accessories for patients in several countries. With the companys distribution connections in Mexico, Romet is planning on entering
new markets in Peru, Columbia, South Africa, and Cuba in 2017. The owner has been conservative in growing the company and
has been able to keep revenue ranging from $200 thousand to $248 thousand respectively year after year. Its main revenue
source comes from the speech aids it produces. There are several opportunities for the company to continue expanding
internationally as well as domestically. Currently, the single shareholder is the companys only employee and handles all aspects
of fulfilling customer orders as well as marketing its products. This is the primary reason the company has not achieved much
growth over the last few years.

The companys sales results are shown in the table below. Please contact Benchmark for a more detailed summary of the
companys financials results.

FYE DEC 31ST 12/19/2016 2015 2014 2013


$ INTERNAL TAX RETURN TAX RETURN TAX RETURN

OPERATING DATA:

Revenue 198,161 247,254 212,819 221,708

Fountain Head Marketing, Inc. 6


BACKGROUND & OWNERSHIP

SUMMARY OF KEY EVENTS

DATE ITEM

Romet was founded in Warwick, RI. Model # R100 launched with a 7.2V
1979
battery and charger.

The corporate assets of Romet were acquired by Fountain Head Marketing Inc.
2009
and the headquarters was relocated to San Antonio, TX.

2010 Introduced the Romet Model # R200 featuring 9V Lithium technology.

Introduced the Romet Model # R300, which combines value with quality and
2011
technology.

Romet Model # R355 came on the market and has a permanent lithium battery
2012,
and cordless re-charging pad. Opened distribution centers for all USA-made
2013
products in countries around the world.

Expanded distributor centers in different countries and partnered with key local
2014
medical product distributors specializing in ear, nose and throat devices

Started relationship with Bulgarian manufacturer.


Romet Laryngectomy Products launches "the smallest innovation in Electro-
2015
Larynx technology" - The R440 ECHO 1 Model digitally programmable
Electronic Larynx.

2016 Launched improved R440 ECHO 2 Model

Fountain Head Marketing, Inc. 7


Products
OVERVIEW
Romet manufactures and sells a variety of branded electronic larynxes. The devices each have separate features and fall in a range of price
points to ensure availability to patients. The four types of electronic larynx models currently branded and distributed by Romet are the R120,
R210, R310, and R440 Echo (see the pictures on the following page). The newest model, the R440 Echo Series, is the smallest and most
lightweight device on the market. Its contains a 9V battery that is easy to replace, has separate external indicators to modify pitch volume and
enter program mode, and has internal PCB (polychlorinated biphenyl) to prevent overcharging. The predicted battery lifetime is over 7,000
recharge cycles. Romet is planning to introduce a new product next year that has state-of-the-art technology and a digital screen. It is expected
to do well and become the top brand on the market.

While Romet owns the intellectual property of the larynx designs, the company outsources its manufacturing and research and development to
a third party contractor in Bulgaria. ROMET has a strong relationship with the manufacturing partner and Mr. Dodson is confident the
relationship can be transferred to new owners. Mr. Dodson advises pricing between the manufacturer and the distributor (Romet) is negotiated
regularly. The manufacturer received a CE 93/42EEC Directives Certification in 2011 and this certification as well as its ISO status ensure it
produces the highest quality electronic larynx devises. The devices are made from either dellrin, a high impact resistant plastic, or aluminum.
According to our seller, these materials make the devices more durable compared to other competing models that are manufactured using
thermoplastics. Investing in research and development is important to staying competitive in this market and Romet consistently works with its
manufacturer to improve products by employing cutting edge technology.

Mr. Dodson will send an order to the Bulgarian contractor and once the devices are completed, they are shipped (via Fed Ex) to Mr. Dodsons
home arriving within two to three days. Romet will then assemble the product and distribute it to the customer. Romet prices its products using a
60% profit margin. The company does not work with health insurance companies but will offer negotiable prices for patients with limited funds.

ADDITIONAL PRODUCTS
In addition to providing electrolarynx devices, Romet also offers electronic larynx and stoma accessories, which include stoma covers,
foam stoma filters, device cases, batteries/chargers, flashlights, and etc. These are the highest quality accessories and at an affordable
value. These products as well as the electrolarynx devices are highlighted on the following page.

Fountain Head Marketing, Inc. 8


PRODUCTS

ROMET ELECTRONIC LARYNX MODELS


A portion of Romets product offering is shown below.
Model R440 ECHO; Price $595

Model R120; Price $250 Model R210; Price $600 Model R310; Price $295

ADDITIONAL PRODUCTS
Shower Guard Stoma Cover Foam Stoma Filters Stoma Covers Oral Adapter Cap

Rechargeable Battery Sets Stoma Light Auto Charger Cord Oral Adapter Tubes

Fountain Head Marketing, Inc. 9


PRODUCTS

REVENUE PER LARYNX DEVICE-2016


A breakdown of sales for each larynx device is detailed in the chart below. Each column reflects the amount of sales for each model of the
larynx line.

40.0%

35.0% 37.1%

30.0%

25.0%
25.2%

22.6%
20.0%

15.0%

13.3%
10.0%

5.0%

2.0%
0.0%
R100 R120 R210 R310 R440

Fountain Head Marketing, Inc. 10


Customers/Distributors
OVERVIEW
Romets products are used worldwide by people that have had a laryngectomy.
Patients are generally 60 years of age or older. The business sells directly to patients, SALES BY TOP 6 CUSTOMERS- 2016*
medical centers, and distributors, but the majority of sales are through exclusive
distributors. The company is currently selling products in 32 countries and recently
gained a new exclusive distributor in Mexico City. The new distributor is also well
$4,100 Yandex
connected with distributors in Colombia and Cuba. Romets largest customer bases are
in China and Chile, which together produced approximately $100k in sales in 2016. $10,080
While 75% of all sales are international, the United States market is a large $16,900 N.R. Enterprises
opportunity for growth. Romet is registered with the FDA and is licensed to sell devices
in all of the countries that it serves. $19,936
Thien Duc Hearing
There are other great opportunities to increase market share. Romet has a distributor in Aids
Japan, but it has not been fully served because of communication barriers. The $30,375
company recently brought on a contracted translator who speaks Japanese to help Ma-Je-R
bridge the communications gap. This will help increase substantial sales growth in this
market. Another opportunity is UK-based Kapitex Healthcare, which is owned by
Sanitas Group
Traco Medical. The company is a distributor of medical supplies throughout Central
Eastern Europe and is now in discussion to add Romets products to their product $82,069
listing. Due to the large number of elderly people who smoke in China, the market Ningbo Sunda
continues to grow monthly and Romets brand will become more well-known in the Trading Co
medical industry. Lastly, key hospitals in the United States such as medical centers in
North and South Carolina, VA Medical Centers, Sloan Kettering, and Johns Hopkins
all know Romets brand and have samples of the products. According to the seller, the
*This chart only shows a portion of the sales.
addition of these medical centers as potential key customers will help further increase
its market share and brand awareness in the United States.

Fountain Head Marketing, Inc. 11


PRODUCTS

SALES BY COUNTRY- YTD NOV 2016


These are the top countries that have produced over $15k in sales. Each listed country has one or multiple accounts.

$90,000

$80,000

$76,194
$70,000

$60,000
$000

$50,000

$40,000

$30,000 $33,864

$26,386
$20,000
$20,827
$15,988 $15,938
$10,000

$-
China Chile Bulgaria Poland Korea Romania

Fountain Head Marketing, Inc. 12


CUSTOMERS / DISTRIBUTORS

MARKETING & CUSTOMER RETENTION STRATEGIES


Romet strives to increase new and repeat business through many marketing strategies. The companys brand is recognized worldwide
because of its ability to network through distributors. The company markets to potential customers through word-of-mouth referrals, website,
Amazon, and associations such as the IAL (International Association of Laryngectomees). The company has a great reputation of providing
the best cost to value ratio and best speech to noise ratio. The products have also the best durability throughout the entire industry. In
addition, Amazon is a great resource for selling larynx and stoma accessories. Amazon also has a bounce back page that leads to Romets
website, where customers can place orders on larynxes. The company also attends annual National and Texas laryngectomee conferences
to meet potential customers and increase brand awareness. Romet maintains repeat business by providing quality engineering in its products,
exceptional 5-year warranties with after market repair services, and continually investing in R&D to perfect product features beneficial to the
patient and unique to the Romet brand.

TESTIMONIALS

I have found that the new updated version of I have used Romet Electro-larynxes for more
the ROMET ELECTRONIC LARYNX device works than 20 years with complete satisfaction. These
as advertised with all external controls for volume devices enabled me to finish out my career as if I
and pitch. I am very satisfied with the ROMET's had never had a laryngectomyWhenever my
overall performance... devices needed repair, very infrequently, Romet
Don Layton, President IENV was always responsive to my requests. I have had
occasion to recommend Romet to others, and they
have all been pleased with the results they achieved
with the devices
Tom Terbell, Retired Banker

Fountain Head Marketing, Inc. 13


Operations
OVERVIEW
Romet operates out of Mr. Dodsons home in San Antonio, Texas. The owner
has kept the business at a size where all operations can be performed by one
or two people. Once the products are received from the Bulgarian contractor,
they are assembled and packed-in house and shipped by FedEx or UPS to the
patient or distributor. This system allows the business to be easily relocatable
and scalable. A new acquirer could create more capacity for higher demand
by leasing or purchasing a warehouse for more inventory.

Mr. Dodson is the President of the organization and he is responsible for


business development and day-to-day operations. Since, the majority of sales
are international, the owner works late and early morning hours. Mr. Dodson San Antonio, TX
does not want to retire but seeks to de-risk and cash out. He is willing to remain
with the company as needed to allow for a smooth transition. Mrs. Dodson is
the Vice President and her responsibilities include general administrative tasks
and assisting as needed with day-to-day operations. She will not be continuing
with the company post close.

NAME ROLE AGE EXPERIENCE

Tom Dodson President 68 40 years

Ruth Dodson Vice President 69 20 years

Fountain Head Marketing, Inc. 14


OPERATIONS

SUPPLIERS
Relationships with suppliers are key to providing quality products and controlling costs. Over the last several years, Romet has built
excellent relationships with key manufacturers and its reputation of fair treatment and timely payments allow the company to work
closely with the best suppliers. Mr. Dodson will ensure that these relationships are transitioned to new ownership.

In addition to the following list, the company has access to additional vendors:

NAME ITEM SUPPLIED LEAD TIME LENGTH OF RELATIONSHIP

S Com, Plodiv Bulgaria Electrolarynx devices 30 days 3 years

Ningbo Sunda Trading Larynx and stoma


45 days 6 years
Company* accessories

JR Electronic Batteries 45 days 5 years

* Also agent for larynx sales in China. The company purchases larynxes from Romet. In exchange, the company
provides Romet with larynx and stoma accessories.

Fountain Head Marketing, Inc. 15


Market & Opportunities
ENT (EAR, NOSE, THROAT) DEVICES MARKET
Growing prevalence of ear, nose, and throat related disorders, coupled with rising geriatric population ratio will be driving global (ear,
nose, and throat) ENT devices market trends throughout the forecast period. The prevalence of hearing loss has been rising over the years
owing to increasing noise pollution levels, along with aging population. Age acts as a major risk factor for acquiring hearing loss defect. As
reported by WHO, close to 15% of the global adult population (15 to 64 years) and 33% of geriatric population (above the age of 65
years); suffer from some kind of hearing loss. Large prevalence rates are observed in emerging regions. In 2012, approximately 89.0% of
the total prevalence belonged to emerging and underdeveloped markets where medical needs are unmet.

The disease burden costs for larynx and [esophageal] cancer is increasing globally, especially in the developing economies. According to
the estimates, by National Cancer Institute around 88,852 cases of larynx cancer were noted in 2012. According to survey conducted by
American Cancer Society, around 15,520 new pharynx cases are estimated to occur in 2015 with 3,140 cases in women and 12,380
cases in men. Such rising prevalence of cancer, and commonly occurring throat disorders should boost the demand for various diagnostic
and surgical devices. Growing population under geriatric segment will positively stimulate the ENT devices market size. According to the
WHO statistics, geriatric population (65 years and above) is set to grow to over 16% by 2050. Since aging is considered as a critical factor
inducing deafness and other hearing loss disorders, this phenomenon will drive industry demand in the coming seven years.

North America took up the largest regional ENT devices market size, valued at USD 6.2 billion in 2015, growing prevalence of hearing
impairment in North America is one of the most significant driving factors. In addition, there is a growing prevalence of deafness in geriatric
population. About 20% of the geriatric population over age 60 suffers from hearing damage and the number increases to 40% over 75
years of age. UK, France and Germany ENT devices market share dominates the European industry, with more than 58% sales in 2015.
LATAM, driven by Brazil and MEA are relatively nascent industries which should see steady growth over the next 6 years.

Source: Global Market Insights


(https://www.gminsights.com/industry-analysis/ent-devices-market)

Fountain Head Marketing, Inc. 16


MARKET & OPPORTUNITIES

U.S. ENT DEVICES MARKET SIZE, BY PRODUCT 2012-2013 (USD MILLION)

ENT devices market size was USD 16.7 billion in 2015, with 5% CAGR growth anticipated by the industry throughout 2016 to 2023.

Source: Global Market Insights

Fountain Head Marketing, Inc. 17


Conclusion

We strongly recommend that your next step is for Benchmark International to arrange a
meeting with Fountain Head Marketing. At the meeting, you and the seller will discuss the
opportunity to further evaluate if the acquisition meets both parties strategic goals. Please
contact Kendall Stafford or Luis Vinals directly to arrange this meeting.

Kendall Stafford Luis Vinals


P: 512.347.2000 P: 512.347.2000
E: Stafford@BenchmarkCorporate.com E: Vinals@BenchmarkCorporate.com

Fountain Head Marketing, Inc. 18


2009 SOUTH CAPITAL OF TEXAS HWY
SUITE 300 | AUSTIN | TEXAS | 78746
T. 512.347.2000
US@BENCHMARKCORPORATE.COM

WWW.BENCHMARKCORPORATE.COM

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