Business Overview

FFC operations began at the end of 2008 and has grown into a thriving homecare business. SSR began developing senior residences in 2014, and continues on a pathway of unlimited growth.

As a Connecticut-based business, FFC is a full-service licensed and ACCREDITED Health Care Services’ Firm that has been in business for over a decade, offering services in New York and Connecticut. The company provides hourly home healthcare services and live-in home healthcare services to upper middle class and high net worth individuals. The company is not a Medicare or Medicaid provider and only accepts private pay clients or clients with private Long-Term Care Insurance policies. 2020 estimates to be $4.25m in revenue and $1.53m in net.

In addition to non-medical homecare, SSR has a very unique business model to add into the homecare business. They were the first in the state of Connecticut to get approval for senior living residents, specializing in memory care. Since 2014 they have purchased, retrofitted, managed and staffed 5-senior living residents (5-bedroom ranch style homes). They currently have 22 residents with $2.1 in annual revenue and EBITDA of $1.35M. The Daily rate is $275 per day. Their competition is either 24-hour live-in care at $345.00 per day or assisted living (memory care) at $550.00 per day. Large assisting living facilities maintain a 1 and 7 ratio per day and at night a 1 to 19 at night. They maintain a 1 -2 during the day and a 1 and 4 ratio during the nighty. They have a much better care ratio.

Services Offered (SSR):

• Hourly and Overnight Care

• Live-In Care

• Alzheimer’s Care

Asking: $19,500,000. Real Estate included is estimated to be worth $5M. Otherwise, option exists to ‘rent’. Asking may be adjusted to $14.5M excluding real estate.

Financial

  • Asking Price: $19,500,000
  • Cash Flow: $6,400,000
  • Gross Revenue: N/A
  • EBITDA: $2,700,000
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2008

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:1,500
  • Lot Size:N/A
  • Total Number of Employees:5
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

SSR has a very unique business model to add into the homecare business. They were the first in the state of Connecticut to get approval for senior living residents, specializing in memory care. Since 2014 they have purchased, retrofitted, managed and staffed 5-senior living residents (5-bedroom ranch style homes). They currently have 22 residents with $2.1 in annual revenue and EBITDA of $1.35M. The Daily rate is $275 per day. Real Estate included is estimated to be worth $5M. Otherwise, option exists to ‘rent’. Asking may be adjusted to $14.5M excluding real estate. The headquarters is located in a leased space of 1500 square feet with an option to buy.

Is Support & Training Included:

Seller is open to a pre-negotiated training period for buyers and their team.

Purpose For Selling:

Seller has decided to retire to spend more time with their family

Pros and Cons:

Senior Home Care Market: The senior home care industry is one of the fastest growing sectors in the United States. The population of seniors in the US is expected to almost double from 55 million in 2020 to 95 million by 2060. AARP stated 87% of seniors want to live out their remaining years at home. COVID-19 has raised the population’s awareness of care facility risks, making homecare even more desirable. 2019 Licensing Requirement Reduced Competition: The company has all the requisite CT home care licensing and accreditation required to operate in the state. In 2019, many states enforced a new law requiring all senior care companies to be licensed as Health Care Services Firms & submit proof of accreditation by an approved accrediting body (3rd party auditor). This resulted in many companies discontinuing senior care services as the licensing, best practices, and accreditation requirements for HCSF in a lot of states are rigorous. This dramatic reduction in competition has opened new growth opportunities for this well positioned company.

Opportunities and Growth:

Growth During The COVID-19 Pandemic: Both FFC and SSR have performed exceptionally well during the COVID-19 crisis. The company had the foresight to inventory Personal Protective Equipment (PPE) prior to the pandemic and immediately developed channels to access additional supply lines which it distributes to clients, caregivers and referral sources. The company’s management team transitioned well in working from home and has full access to the company’s proprietary information systems. The company continued to accept new clients, including COVID-19 positive clients, during the COVID-19 Pandemic, during a time in which many other agencies are not accepting new clients allowing the company to excel during these uncertain times. Because of its strong performance during the COVID Pandemic, the company deepened its brand image within its market and positioned itself as an industry leader with a bright future of continued growth.

Additional Info

The company was started in 2008, making the business 14 years old.

The business has 5-FT / 120-PT employees and resides in a building with disclosed square footage of 1,500 sq ft.
The real estate is leased by the company for $4,000 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons people decide to sell operating businesses. However, the real factor and the one they tell you may be 2 completely different things. For instance, they might state "I have too many other obligations" or "I am retiring". For lots of sellers, these reasons stand. But also, for some, these might simply be justifications to attempt to hide the reality of changing demographics, increased competitors, current reduction in incomes, or a range of various other factors. This is why it is very crucial that you not rely entirely on a vendor's word, but rather, use the vendor's response along with your general due diligence. This will paint an extra practical image of the business's present situation.

Existing Debts and Future Obligations

If the current entity is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of businesses finance loans so as to cover things such as inventory, payroll, accounts payable, etc. Remember that in some cases this can mean that earnings margins are too tight. Lots of organisations come under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also be future obligations to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with vendors that need to be satisfied or might cause charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the location attract new clients? Many times, businesses have repeat customers, which create the core of their daily profits. Particular variables such as new competitors sprouting up around the area, road building and construction, and employee turnover can influence repeat consumers and also negatively affect future earnings. One vital point to consider is the placement of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Clearly, the more people that see the business often, the greater the opportunity to develop a returning consumer base. A last thought is the general location demographics. Is the business placed in a densely populated city, or is it located on the outskirts of town? How might the regional mean family income influence future income prospects?