Beruflich Dokumente
Kultur Dokumente
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
PRODUCTS 8
CUSTOMERS/DISTRIBUTORS 11
OPERATIONS 14
CONCLUSION 18
The companys sales results are shown in the table below. Please contact Benchmark for a more detailed summary of the
companys financials results.
OPERATING DATA:
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.
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
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.
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
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
$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
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
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:
* Also agent for larynx sales in China. The company purchases larynxes from Romet. In exchange, the company
provides Romet with larynx and stoma accessories.
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.
ENT devices market size was USD 16.7 billion in 2015, with 5% CAGR growth anticipated by the industry throughout 2016 to 2023.
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.
WWW.BENCHMARKCORPORATE.COM