Senior Care, Appraised Price, Proj. ROI 57%

Not Disclosed, PA
Bucks County

Bucks County


Asking Price: Annual Revenue:
$1,560,000 $2,293,614

Services: Medical, Dental


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RE: Senior Care, Appraised Price, Proj. ROI 57% Broker: Blue Stone Business Group

Quick Facts

Asking Price: $1,560,000
Annual Revenue: $2,293,614
Net Profit: Not Disclosed
Cash Flow: $487,022
Total Debt: Not Disclosed
FF&E: Not Disclosed
Real Estate: Not Disclosed
Year Established: 2004
Employees: Not Disclosed
BBN Listing #: 480355583
Broker Reference #: hi.pa.bucks

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Business Overview:

This is a Major IN-HOME senior care business – One of THE top franchise brands in the nation! Solid company with a seller ready to retire. Even though the numbers look good they could be MUCH better as the company is actually UNDER performing by about 7 to 8 points! This company should be making $528k to $720k in earnings vs the $487k. We know this, as we’ve been selling these for 13 years and have 1,000’s of financial statements from around the country that support this. We likely know the answers too and a call with our Managing Director will help you understand what would need to be done to correct the issue. And the “fix” is not that difficult!

THE COMPANY: The business 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. 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.

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 57%!
• Total purchase price: $1,560,000 (*Appraised Price)
• Down payment: $312,000
• Current SDE (cash flow of the business/what the business makes in earnings): $487,022 (Sellers Discretionary Earnings)(*4 year weighted average)
• Amount financed: $1,248,000
• Debt service per year (annual note payment): $183,685 (10 years at 8.25% apprx.)
• SDE less debt service: $303,337
• Assume - New owner to pull $125,000 a year out of the business in wages.
• Remaining SDE (cash flow) AFTER owner wages and paying annual debt service: $178,337. So even after paying your debt service each year and taking out $125,000 in a wage you should still have $178,337 to do with as you wish, pay down debt early, take it out in additional wages or go to Vegas!
• 57%...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 and DOES assume you take over a key position in the business that will require you to be there around 30 to 40hrs a week. 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.

APPRAISED PRICE:
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. The point is this is a solid appraisal number.

SALES/ SDE HISTORY:
2019: $3,658,129/$535,340
2020: $3,264,176/$474,142
2021: $3,036,401/$528,283
2022 (projected): $2,293,614/$410,323

*SDE: Weighted average over 4 years: $487,022
*Non-Disclosure Agreement required by the seller. Sale is confidential.
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Property Features and Assets:

Well-Established. Modern, very nice, well-equipped, well-decorated offices. Quality caregivers; Staff. Huge service area with thousands of seniors.

Market Competition and Expansion:

Senior service businesses are in the TOP six recession-proof industries. Most businesses in this industry (probably why they are in such demand) have been VERY Covid resistant and this location is no exception! In fact, 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!

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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