52% Proj. ROI, Lender Ready, Appraised Price

Not Disclosed, CA
Santa Barbara County


Asking Price: Annual Revenue:
$1,780,000 $2,375,793

Services: Senior Living & Care, Assisted Living


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RE: 52% Proj. ROI, Lender Ready, Appraised Price Broker: Seller of Business

Quick Facts

Asking Price: $1,780,000
Annual Revenue: $2,375,793
Net Profit: Not Disclosed
Cash Flow: $561,537
Total Debt: Not Disclosed
FF&E: Not Disclosed
Real Estate: Not Disclosed
Year Established: 2001
Employees: Not Disclosed
BBN Listing #: 732755583
Broker Reference #: hi.ca.sb

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Business Overview:

This company is one of THE Top named FRANCHISE brands in the nation doing non-medical, in-home, senior care work! You see their ads all the time on TV. The location has several areas that can increase your earnings each year and one activity alone could actually realize you an extra $630,000 in your pocket if you planned on possibly flipping the location in 2 to 3 years! See our “thought experiments” to further explain this. Further, and this is REALLY important, the $350,000 initial investment (down payment) can actually be put back in your pocket in only 1 year of running the company!!! That’s huge! Any business where you can get your investment back in the first year = unicorn, but it’s true with this location and the numbers easily prove this. The business has been operating since 2001 and focuses on sending caregivers to a client’s personal home/residence to help them with daily life activities, such as light cleaning, food preparation, grocery shopping, walking with them and just basic companionship. The idea is to keep the individual in their own home rather than having to go into an Assisted Living Facility.

BUYERS:
Time is of the essence…You may not want to wait on this business, as our last senior care transaction was under contract in 72 hours and the one prior to that in 24hours! We had one location last year that we didn’t even advertise, and it sold for full price and closed in 45 days! Translation….This is a very in-demand business model and they go fast when they are properly presented…as you see here.

POSSIBLE DEAL STRUCTURE AND RETURN ON YOUR INVESTMENT (ROI):
• Projected ROI of 52%!
• Total purchase price: $1,780,000 (appraised price, not an asking price)
• Down payment: $350,000
• Current SDE (cash flow of the business): $561,537 (3 year weighted average)
• Amount financed: $1,430,000
• Debt service per year (annual note payment): $210,471
• SDE less debt service: $351,065
• Assume a New owner to pull $170,000 a year out of the business in wages.
• Remaining SDE (cash flow) after owner wages and paying annual debt service: $181,065; So even after paying your debt service AND taking out $170,000 in a wage you should still have $181,065 (left over) to do with as you wish; Pay down debt early, take it out in additional wages ...or go to Vegas!
• Projected ROI: 52%....Annual return of investment on your injected capital/down payment each year. A great year in the stock market would be 15% to 20% and the average is about 7%. The assumption is that you do actually work in the business similar to the way the current owner does now.
• This scenario does not include working capital. You can normally secure the working capital as a line of credit from the bank as part of your loan structure.
• Important: Do not take our word for it on the investment information, call and meet with your accountant and make sure he/she agrees with the outline above. Do not make any financial investment into this business where your money could be at risk until you agree with your financial advisors opinion and are comfortable with the presented numbers from the seller.

APPRAISAL:
The owner had a WALL STREET LEVEL APPRAISAL completed on the business. Wells Fargo, US Bank, Radius Bank, CIBIC Bank and about 10 other major banks use this valuation firm to do their own internal appraisals for their underwriter teams.

SALES/SDE HISTORY:
Sales / Earnings (SDE) (SDE = Sellers discretionary earnings)
2019: $1,365,040 / $227,229
2020: $2,344,688 / $$599,214
2021: $2,375,793 / $529,674
2022 (projections): $2,145,095 / $557,409
SDE: $561,537 ( 3 year weighted average)

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Property Features and Assets:

This particular location has an INCREDIBLE reputation in the community for providing this high quality non-medical in-home care and we think when you dive into this further, you’ll agree with that assessment. Modern, fully-equipped office. Quality caregivers, staff. Great service territory with thousands of seniors.

Market Competition and Expansion:

Competition: Franchise Business Review lists senior service businesses in the top six recession-proof industries. The senior care industry is growing and will continue to grow with the senior population expecting to grow by 25% over the next 10 years. Due to so many issues with Assisted Living Facilities (lockouts, deaths) this business model has been overwhelmed and will likely stay this way for years and years to come…not that it wasn’t pre-covid. So, the takeaway here, is that THIS business model will likely be with us in perpetuity! Growth & Expansion: Oversee the business on a daily basis, oversee staff, sales, marketing. Implement aggressive marketing/advertising strategies. Build referral sources. Build community relationships. Diversify services. Attend industry trade shows. Join business associations/chambers.

Reason for Selling:

Retirement

Additional Details:

  • The property is leased.
  • The owner is willing to train/assist the new owner.
  • This is not a homebased business opportunity.
  • This is a franchise resale opportunity.

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