Senior Care Outstanding 41% Return On Investment

Highland, IN
Lake County

Asking Price: Annual Revenue:
$895,000 $2,800,000

Services: Senior Living & Care, Assisted Living

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RE: Senior Care Outstanding 41% Return On Investment Broker: Seller of Business

Quick Facts

Asking Price: $895,000
Annual Revenue: $2,800,000
Net Profit: Not Disclosed
Cash Flow: $308,853
Total Debt: Not Disclosed
FF&E: Not Disclosed
Real Estate: Not Disclosed
Year Established: 2014
Employees: 115
BBN Listing #: 516255583
Broker Reference #:

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Business Overview:

This Is an In-Home Senior Care / Medical Staffing business - The two-territory location does both medical (Home Health/Skilled Care) and non-medical services. There were significant (one-time) issues that took place in 2019 and 2020 that have had an impact on this company (sales and earnings) and a new owner/operator should be able to get this back to 2018 levels where this business was dropping 13% of sales to seller’s discretionary earnings (SDE)…what you would make in the business. And 13% is LOOOOWWW for this industry. We have countless senior care locations we’ve personally sold where the SDE is 16% to 27%! So if you take $2,800,000 in sales (currently) at only 16%, that’s $448,000 into your pocket a year (before debt service)! The location has a solid staff, many accounts, excellent caregivers, referral sources, multiple profit centers, and specialty services that make this brand really stand out against all others. The company provides full in-home personal and companion care to seniors, including help with daily tasks such as light housework, meal prep, errands, transportation, medicine reminders, and other care. You do not need any experience in the medical Industry to succeed. Extensive training and support is provided. The owner's role is to market and build your business, expand and build relationships in the community, and manage a dedicated team of quality caregivers. Contact us for the short-online NDA for a further discussion, extensive business profile, etc.

2017 - $3,575,368 (tax return) SDE - $396,146
2018 - $3,743,552 (tax return) SDE - $458,083
2019 - $3,000,238 (tax return) SDE- $251,386
2020 – Projection as of Oct 2020 = $2,800,000 SDE- $310,000

POSSIBLE DEAL STRUCTURE: with an owner/operator running the company similar to the seller currently:

Projected (return on investment) R.O.I. of 41%!
*For bank financing, buyer is required to put down approx. $248,000 as down payment.

• Total purchase price: $895,000
• Down payment: $248,000 (required for bank financing)
• Current Projected SDE for full 2020 year-end (what you would earn in the business): $308,853
• Amount financed: $647,000 ($895,000 - $248,000 = $647,000)
• Debt service per year (annual note payment): $86,196 (10 years at 6.00% apprx.)
• SDE less debt service: $222,657 ($308,853 – $86,196 = $222,657)
• Assume - New owner to pull $120,000 a year out of the business in wages
• Remaining SDE (cash flow) after owner wages and paying annual debt service = $102,657 ($308,853-$86,196- $120,000) = $102,657)
• Return on investment or your return on injected capital (down payment) year after year = 41%! ($102,657/248,000) …Tough to get this in the stock market!! So, bottom line, you have an extra $102,657 after paying the debt service and giving yourself a $102k year salary to do with as you wish i.e.; pay down your loan early, reinvest in the business, etc.

• This scenario does not include additional working capital or other loan related fees.

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
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, real estate values, etc. must be verified with the seller and buyer's own professional independent advisors, CPA, etc. *Gross Revenue and Cash Flow stated by seller. Buyers should always verify all information with the seller and their own advisors before putting any money at risk.

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:

Modern, well-maintained and equipped office space, approx. 2500 sf. Well-Trained staff. Many Quality care givers. Referral sources. Great database of clients, and existing accounts/clients.

Market Competition and Expansion:

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 our services. We believe that competition for qualified personnel will continue to increase and that our benefits and methods of "sharing the success" with our employees will make us an attractive employer in the marketplace and allow us 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.****************************Growth/Expansion: Implement Aggressive Marketing/Advertising. Build Relationships / Referral Sources. ********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.

Reason for Selling:

Personal. Contact us to discuss.

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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