Listing ID: 67608
Mental health services and day support for adults. Intensive in-home and Therapeutic Day Treatment (TDT) services for children. Services provided by Qualified Mental Health Professionals for Adults and Children. Offering services from 2 locations .
Started by community activist to serve people in need of behavioral assistance. Owner has grown operation from local service firm to a business servicing numerous cities and counties in the state.
Competitive Overview A few local, regional and national firms offering similar services, the seller has developed an extensive referral and provider network.
- Asking Price: $3,600,000
- Cash Flow: $800,000
- Gross Revenue: $2,835,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: $500
- Inventory Included: N/A
- Established: 2009
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
The venture was started in 2009, making the business 13 years old.
The transaction shall not include inventory valued at $500*, which ins't included in the asking price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals resolve to sell businesses. Nevertheless, the true reason vs the one they tell you might be 2 absolutely different things. For instance, they might state "I have too many other obligations" or "I am retiring". For many sellers, these reasons are valid. But, for some, these may just be reasons to attempt to conceal the reality of changing demographics, increased competition, recent decrease in earnings, or a variety of other reasons. This is why it is very essential that you not rely absolutely on a seller's word, however rather, use the seller's response along with your overall due diligence. This will repaint an extra reasonable picture of the business's existing situation.
Existing Debts and Future Obligations
If the existing business is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your deal. Numerous businesses take out loans with the purpose of covering points like inventory, payroll, accounts payable, so on and so forth. Remember that in some cases this can indicate that earnings margins are too thin. Lots of companies fall into a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may likewise be future commitments to consider. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with suppliers that need to be satisfied or might result in penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the location attract new clients? Often times, operating businesses have repeat customers, which develop the core of their daily profits. Particular elements such as new competitors sprouting up around the location, road construction, as well as employee turn over can influence repeat customers and negatively impact future profits. One essential thing to think about is the location of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more individuals that see the business on a regular basis, the greater the possibility to construct a returning client base. A last idea is the general location demographics. Is the business located in a densely populated city, or is it located on the outside border of town? How might the local median household earnings influence future income prospects?