Business Overview:
This Is an In-Home Senior Care / Medical Staffing Franchise (resale). This business does both medical and non-medical services. The owner has been in the business for years and is looking to retire. The company is well-established with great sales and cash flow, multiple profit centers, and specialty services that make this brand really stand out against all others. The location has a solid staff, many accounts (several national accounts), excellent caregivers, and referral sources already in place. The business encompasses a huge geographical service territory with a growing population of thousands of seniors ages 65/75.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 provided by the franchisor. 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 NDA for more information.
Possible deal structure:
• Projected ROI of 34%
• Total purchase price: $684,000
• Down payment: $205,000 (*If bank financing of any kind is used $205,000 will be required, as your down payment to make the deal work.)
• SDE (what you would earn in the business): $234,000
• Amount financed $479,000 ($684,000 - $205,000 = $479,000)
• Debt service per year (annual note payment): $64,393 (10 years at 6.20% apprx.)
• SDE less debt service: $169,607 ($234,000 – $64,393 = $169,607)
• 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:$69,607 ($234,000 – $100,000 - $64,393 = $69,607)
• Return on investment or your return on injected capital (down payment) year after year = 34%! ($69,607/$205,000) 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.
2018: Sales: $1,478,667 / SDE: $225,826
2019: Sales: $1,508,865 / SDE: $251,479
2020: Sales: $,1,410,903 / SDE: $188,043
2021 (projections): $2,283,599 / SDE: $353,420
(valuation firm’s weighted average: $234,947).
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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, 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. Gross Revenue/Cash Flow 2020.
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Property Features and Assets:
Well-Established. Modern well-equipped office space, 1232 sf. Well-Trained staff, managers, coordinators, recruiter, RNs, etc. Many Quality care givers. Referral sources. Huge database of clients, and existing accounts/clients. Huge geographical service area with thousands of seniors over the age 65/75.
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.
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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