Senior Care Lender Ready Appraised Price

Not Disclosed, ME
Cumberland County

Cumberland County


Asking Price: Annual Revenue:
$2,990,000 $5,069,266

Services: Senior Living & Care, Assisted Living


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RE: Senior Care Lender Ready Appraised Price Broker: Blue Stone Business Group

Quick Facts

Asking Price: $2,990,000
Annual Revenue: $5,069,266
Net Profit: Not Disclosed
Cash Flow: $848,732
Total Debt: Not Disclosed
FF&E: Not Disclosed
Real Estate: Not Disclosed
Year Established: Not Disclosed
Employees: Not Disclosed
BBN Listing #: 402555583
Broker Reference #: ck.me.port

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Business Overview:

You have run across a Highly Sought After Successful In-Home Senior Care business with a long successful history of helping seniors stay in their homes by taking care of some of their basic “life” needs. This is one of THE top locations doing this work in the whole southern part of Maine! The numbers and profits speak for themselves, so if you’re looking for a long-term, successful business for you and your family in an industry that makes a positive difference for a lot of people, this is certainly one to dive deeper into. Below are the impressive details:

HIGHLIGHTS:

This is a Major IN-HOME senior care business with over 100 clients/accounts and a solid history of sales and earnings. 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.

Additionally, 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!

Finally, 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 7 days and the 2 before that, in less than 46 days! 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 47%!
• Total purchase price: $2,990,000 (Appraised Price)
• Down payment: $598,000 (20%) again, you might get this done with 15% or $448k
• Current SDE (cash flow of the business/what the business makes in earnings): $848,732 (2 year weighted avg. (SDE)= Sellers Discretionary Earnings)
• Amount financed: $2,392,000 ($2,990,000 - $598,000)
• Debt service per year (annual note payment): $317,234 (10 years at 5.9% apprx.)
• SDE less debt service: $531,505 ($848,739 – $317,234)
• Assume - New owner to pull $250,000 a year out of the business in wages.
• Remaining SDE (cash flow) AFTER owner wages and paying annual debt service: $281,505 ($848,739 - $317,234 - $250,000= $281,505). So even AFTER paying your debt service and taking out $250k in a wage, you should still have $281,505 to do with as you wish, pay down the debt early, take it out $531,505 ($250k + $281,505) in total wages, or go to Vegas!

A THOUGHT EXPERIMENT: If you applied the extra $281k per year to the loan payments you’d pay this off in about 4.6 years!! Check the math yourself.

• Return on investment or your return on injected capital (down payment) year after year = 47%! ($281,505/$598,000,000 = 47%) >>>When could you ever get this in the stock market short of buying Bitcoin back 4 years ago!

• 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/ REVENUE HISTORY:

2018: $6,318,515 (two locations)
2019: $6,287,285 (two locations)
2020: $5,069,266 (single location)
2021 (predicted):$5,293,887 (single location)
*Cash Flow is weighted 2 year average. Gross Revenue 2020. Information, data, financials stated by seller.

EXPERIENCE/TRAINING:

No Experience In The Medical Industry Is Needed. Extensive training and ongoing support provided. Seller will provide training during transition.

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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/Inventory, 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.

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. Modern, super nice, well-equipped, well-decorated offices. Quality caregivers, solid staff. Two huge service territories with thousands of seniors.

Market Competition and Expansion:

Senior service businesses are 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.

Reason for Selling:

Retirement from industry.

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 not a franchise resale opportunity.

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