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Business for Sale Overview:

This information describes some of the the highlights of the deal Home Health care investment deal: The investor would play two roles in this deal: 1) as an investor and 2) as the private banker. The total investment in cash would be $500,000, which is the purchase price of the business. The buyers are providing the working capital cash. The buyers would run the operations of the company. Their activities would be managed by a "receiver" that would act on the investor's behalf and provide weekly updates. (The company would pay the receiver an annual salary while the investor is involved). The "loan" would be repaid in three years from future receivables of the company. The interest rate on the loan would be 10% made in equal monthly payments. Monthly payments would be $16,133 (Current monthly Medicare payments average $200,000). The investor would also receive a return on the investor equity portion of the business, which would be 40% of the monthly proceeds, (net of normal operating expenses including debt service) as certified by the "receiver". The investor would hold all of the stock of the company until the loan is repaid. About the company: The business has been in operation for almost two years operating as a PPS Home Health Care provider. Certified by Medicare. Revenues last year where $3,100,000. 60% of patient billings are paid within 12 days after receipt by Medicare, so there typically are no receivables (other than the outstanding 40% conditional payments). The company has a small office located in a western Detroit suburb and they service the entire Southeastern Michigan area. There is an existing staff that provides the home visits. About the purchasers: There are three partners who are buying the company: One would be the business leader; another is an RN who would run the Daily health care operations and the third would be the Medicare liaison/administrator. The three of them would take normal salaries plus a portion of the proceeds. Two of the individuals have extensive experience in the business (their current relationships created this opportunity). They currently have a customer base that would be immediately transferred to this company when they take over, immediately creating more revenue. (about 32 clients). As you know, the big part of this business (after getting the Medicare certification) is to have a good referral network for patients. The buyer's have established contacts (MD's etc.) who have provided written commitments to send new patients to this business once they take over. Advantages the investor: A seemingly sound investment given the past history and the projected future for the service in the marketplace. The current owners have paid themselves significant sums of money so far. The business would not provide a huge commitment on your part in terms of your time. You would be able to concentrate on the current things that you are doing. It provides an established exit strategy. If the current operation is not meeting your expectations, you can take it over directly. The certification process is completed and the annual certification updates are current.