Successful Senior Care - 46% Return On Investment

Baltimore, MD
Baltimore County


Asking Price: Annual Revenue:
$723,000 $1,462,719

Services: Senior Living & Care, Assisted Living


Request More Information
Contact the Seller

RE: Successful Senior Care - 46% Return On Investment Broker: Blue Stone Business Group

Quick Facts

Asking Price: $723,000
Annual Revenue: $1,462,719
Net Profit: Not Disclosed
Cash Flow: $255,000
Total Debt: Not Disclosed
FF&E: Not Disclosed
Real Estate: Not Disclosed
Year Established: 2009
Employees: Not Disclosed
BBN Listing #: 108355583
Broker Reference #: cfc.md.glenb

Email or Print Listing

Request More Information
Contact the Seller


Business Overview:

Successful Two Territory In-Home Senior Care business (franchise resale) - In operation for more than ten years. Consistent cash flow and sales for 3 years in a row and 2021 looks to be in line with projections. Sellers looking to retire. The company has many active clients and a huge roster of high-quality caregivers, as well as trained/seasoned staff, coordinators, etc. The business has an incredible reputation in the community, providing non-medical in-home care to seniors, assisting them with activities of daily living, including companion care and hands-on personal care services.

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.

POSSIBLE DEAL Structure Below:
• Projected ROI of 46%!
• Total purchase price: $723,000 (The price advertised is not an asking price - it is the appraised price)
• Down payment: $180,000 (approx. 25% x $723,000)(required if bank financing going to be used).
• Current SDE (cash flow of the business): $255,000 (*weighted average)
• Amount financed: $543,000 ($723,000 - $180,000 = $543,000)
• Debt service per year (annual note payment): $72,997 (10 years at 6.20% apprx.)
• SDE less debt service: $182,003 ($255,000 – $72,997 = $182,003)
• Assume - New owner to pull $100,000 a year out of the business in wages.
• Remaining SDE (cash flow) after owner wages and paying annual debt service: $82,003 ($255,000 - $100,000 - $72,997 = $82,003). So even after paying your debt service and taking out $100k in a wage you should still have $82,003 to do with as you wish, pay down the debt early, take it out in additional wages, etc.!

• Return on investment or your return on injected capital (down payment) year after year = 46%! ($72,997/180,000 = 46%) >>>Tough to get this in the stock market!

• This scenario does not include working capital.

• 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.

**************
Sales/SDE:

Sales 2018: $1,032,064 / SDE: $243,510
Sales 2019: $1,279,022 / SDE: $$282,565
Sales 2020: $1,4,62,719 / SDE: $237,841
Sales 2021(projections):$1,431,850 / SDE: $257,225

**************
NO EXPERIENCE In The Medical Industry Is Needed. Extensive training and ongoing support provided by franchisor. Seller will provide training during transition also.

**************
Non-Disclosure Agreement (NDA) is required. The sale is confidential which is why we are not publishing sensitive financial information or the name. Information provided to qualified buyers with NDA in place*.

All information, data, financials, valuations, appraisals, inventory, FFE/Assets/Equipment, real estate values, etc. must be verified with the seller and buyer's own professional independent advisors, CPA, etc. Buyers should always verify all information with the seller and their own advisors before putting any money at risk. No brokers or students please. Cash Flow is weighted average – valuation. Gross Revenue 2020. Information, data, financials stated by seller.

CONTACT US TODAY For the NDA For Details. We will email the short 3-minute online NDA form shortly after we receive your request. Please be sure to check your spam/junk folders also.

To request more information regarding this listing, simply check the ADD TO REQUEST INFO BASKET button and when you are done searching and have made all your selections, simply click on the REQUEST INFO button at the bottom of the page.

Property Features and Assets:

Well-Established franchise. Modern, well-equipped, nicely decorated office space. Trained staff, many quality caregivers. Two territories serving a huge geographical area.

Market Competition and Expansion:

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. More recently driven by concerns brought on by COVID-19 the industry has seen an increased interest in in-home services as seniors and their families question the safety of moving into a group living situation such as a senior apartment, assisted living or nursing home. Additionally, those in the hospital are choosing to be released home with non-medical in-home care services instead of being transferred into a rehabilitation facility due to safety concerns. More seniors are now opting to age in place and bring help in or move in with family and hire additional support services to come into their family home. This is in addition to an earlier survey conducted by AARP that stated that at that time (prior to COVID) 86% of seniors wanted to age in place. Families also move their loved one out of assisted living and into their own home, hiring additional assistance due to their concerns about the safety of their loved one living in a group setting. Changes in the payment reimbursement model in January of 2020 for hospitals and skilled nursing has also increased client flow. Facilities are no longer able to keep patients as long as they once were under Medicare guidelines which has led to an increase in the need for in-home care.*******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. ***********************************Why is there a boom in the service area? --- Beyond elder care. An increasing number of the elderly couples and singles are living fulfilling lives on their own. As they age, however, they will require more and more services to help them deal with day-to-day living. Some of the most successful businesses of the next few years will be ones that will provide cost-efficient services, both medical and non-medical, for the aging population of the United States. ****************************************The senior Care Environment --- Long-term Care Demand and Our Aging Population - The market for long-term care is rapidly increasing. By the year 2030, about 1 in 5 Americans will be elderly. As of 2020, the U.S. population over the age of 65 projected to grow to 55 million while the population over the age of 85 projected to increase by four times to over 13 million. As age increases, the need for long-term care also increases. ****************************************Shortage of Nurses --- There is an acute shortage in the United States of registered nurses. A recent study published by the American Hospital Association states that the average age of a nurse is 45 years old and that less than 10% of all nurses are under the age of 30. This coupled with the dynamics of an aging population and increased government requirements for staffing at hospitals and nursing homes have created a substantial demand for in-home services. It is believed that competition for qualified personnel will continue to increase and that benefits and methods of "sharing the success" with employees will make in-home care companies an attractive employer in the marketplace and allow them to be the most attractive answer when individuals are looking for employment. **************************************************** Why Would Nurses Become Contract Workers Instead of Full-time Employees? --- Many nurses are switching from demanding shift positions in traditional settings to contract staffing. For a comparable salary and benefits, an employee has more flexibility and control over their schedule, vacations and holidays and less risk. Some nurses enjoy doing a variety of jobs in which they can use many of their skills and others prefer to use one specialty, contract work allows these options.

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.

Relevant Links:

Request More Information
Contact the Seller



BusinessBroker.net is one of the largest business for sale marketplaces in the world that connects tens-of-thousands of business buyers and sellers every month. Sell a Business Online or if you’re a broker or a commercial agent sign up for a Business Broker Membership today!