Selling for $63,000 UNDER Appraised Price!

Richmond, VA
Richmond County


Asking Price: Annual Revenue:
$585,000 $810,000

Services: Senior Living & Care, Assisted Living


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RE: Selling for $63,000 UNDER Appraised Price! Broker: Blue Stone Business Group

Quick Facts

Asking Price: $585,000
Annual Revenue: $810,000
Net Profit: Not Disclosed
Cash Flow: $220,000
Total Debt: Not Disclosed
FF&E: Not Disclosed
Real Estate: Not Disclosed
Year Established: 2017
Employees: 31
BBN Listing #: 11655583
Broker Reference #: sh.va.rich

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Business Overview:

This Is A Successful Top In-Home Senior Care Business (franchise resale), UP 34% YTD THIS YEAR VS. LAST YEAR, and 2020 was its best year ever!

The company had a Wall Street Level appraisal of $602,000 back in late 2020 and with current trends (again, up 34% in sales vs. this same time last year) the business would likely re-appraise at around $650,000 (today). We had this sold, but our last buyer had personal issues and had to back out of the project (just recently), all the while the company continued to grow.

As it stands, the current price of $585,000 would likely equate out to about $63,000 in equity you’d realize by buying it at this price. In fact, if the company finishes June with the same strong trend, we will have the company re-appraised and go back at the new number, so take advantage of this now before the price increases.

To restate this a bit differently, you could buy this company today at $585,000 and likely turn around and sell it for around $650,000 making you a nice $63,000 profit (before selling commissions). This does not happen but maybe once every couple of years with our firm, so if you’re considering a senior care business, you owe it to yourself to look this one over. Another thing to note…the books are SUPER CLEAN and you’ll have no problem working out what the company will make you.

2019 Sales/SDE: 687,022 / SDE 183,405
2020 Sales/SDE: 698,039 / SDE 184,420
2021 Sales / SDE (*current projections): 810,000 / SDE 220,000
(SDE = seller’s discretionary earnings)

The business has many active clients, high-quality caregivers, and referral sources already in place. This is a solid company and brand with great sales and cash flow and tons of opportunity for continued growth for a new owner. The business has a sterling reputation in the community (consistent and numerous top reviews), providing in-home care to seniors, assisting them with activities of daily living, including companion care and hands-on personal care services. In a GREAT market / destination, Richmond, “One of the Country’s Top 10 Hottest Housing Markets and part of the Top 100 Best Places to Live” (Washington Post).

Go to this website: https://www.newhomesguide.com/blog/2014/02/life-in-richmond-va-a-spotlight-on-a-once-well-kept-secret/

A COMMENT ABOUT THE APPRAISAL…The appraisal of $602,000 was completed by the same appraisal firm that Wells Fargo, US Bank, Bank of the West, CIBC Bank and dozens of other banks use. Why did we price this UNDER the valuation…Motivated seller (family obligations) - wants you to have an easier time financing the business, to make the deal go smoother.

*For bank financing, buyer is required to put down approx. $117,000 as down payment.

POSSIBLE DEAL STRUCTURE:
• Projected ROI of 49%!
• Total purchase price: $585,000 (Appraised Price Is $602,000-likely to re-appraise at $650k today)
• Down payment: $117,000
• Current Weighted SDE (what you would earn in the business): $220,000 (based on this year’s 2021- projections (2020 was $186k)
• Amount financed: $468,000 ($585,000 - $117,000 = $468,000)
• Debt service per year (annual note payment): $62,915 (10 years at 6.2% approx.)
• SDE less debt service: $157,085 ($220,000 – $62,915 = $157,085)
• 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 = $57,085 ($220,000 – $100,000 - $62,915 = $57,085)
• Return on investment or your return on injected capital (down payment) year after year = 49%! ($57,085 / $117,000). So take the extra $57,085 and either pay down the debt faster or pay yourself $157,000 a year…up to you.

• This scenario does not include additional 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.

*$63,000 is based on what the company is currently doing as of the 1st quarter of 2021 vs. 2020 if we applied the same calculations from the first appraisal. This is an estimated number only, but would likely bear out based on the business’s current trend YTD (April 2021).

NDA: A Non-Disclosure Agreement is required. Inquired today with your telephone/email address and within just a few minutes - we will Email the short online NDA form and contact you shortly after it's received.

Cash Flow/Revenue 2021 projections. 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. 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:

In a GREAT market / destination, Richmond, “One of the Country’s Top 10 Hottest Housing Markets and part of the Top 100 Best Places to Live” (Washington Post).....Modern, well-maintained and very nicely decorated office, with office equipment, furniture, supplies, etc. Great list of quality caregivers (approx. 30). Huge service territory encompassing: Richmond, Henrico, Mechanicsville, Quinton, Providence Forge, West End, Carytown, The Fan, Museum District, University Of Richmond, Sandston, N. Chesterfield, Bon Air, Lakeside.

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.************* Growth & Expansion: Implement aggressive marketing/advertising strategies. Build referral sources. Build community relationships. Diversify services. Operate the business on a daily basis – oversee the staff, etc.; 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.

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