Business Overview

This family-owned niche health care center has served its customers from Greater San Antonio for almost 50 years. Major enhancement in facilities and services during the 90’s. Today it can boast with being the largest operator in its field in San Antonio. Its skilled and loyal staff are recognized in the community for providing excellent service. Due to its stellar reputation with its clients, caregivers and various referral sources, this business spends no money on marketing. COVID impacted the business in 2020, but it largely rebuilt its capacity during 2021 and is highly profitable. 2022 will continue to grow as client capacity and personnel can be normalized. The current owners are ready to retire, but for the ambitious new owner there are several additional growth opportunities for this business.

This is a very profitable operation, with a pre-COVID Seller’s Discretionary Earnings (SDE) of 35+%. Revenue in 2019 were $1.76MM with an SDE of $673k. In 2020 COVID brought revenue down to $775k with SDE of $81k. In 2021 after some restrictions were lifted revenue increased to $1.18MM with SDE of $347k.

Financial

  • Asking Price: $1,400,000
  • Cash Flow: $347,000
  • Gross Revenue: $1,180,000
  • EBITDA: N/A
  • FF&E: $170,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 1976

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:16,000
  • Lot Size:N/A
  • Total Number of Employees:15
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The business is based in north central San Antonio on about 2.5 acres with 16,000 square feet of air-conditioned facilities. The facilities can be leased for $10,000 + NNN/month, or purchased for $1,750,000.

Is Support & Training Included:

Seller will stay on for one month, and by mutual consultation agreement thereafter, to ensure a smooth transition.

Purpose For Selling:

The owner wants to retire

Pros and Cons:

There are several other competitors, but this business is the largest and most unique in its field, and therefore a step above the rest.

Opportunities and Growth:

This company has great potential to grow by restaffing and admitting clients after COVID, and by converting some of the existing facilities into revenue generating activities.

Additional Info

The venture was founded in 1976, making the business 46 years old.

The business has 15 employees and resides in a building with estimated square footage of 16,000 sq ft.

Why is the Current Owner Selling The Business?

There are all sorts of reasons individuals decide to sell businesses. Nevertheless, the real reason vs the one they tell you may be 2 entirely different things. As an example, they might claim "I have a lot of other obligations" or "I am retiring". For numerous sellers, these reasons are valid. But, for some, these may simply be reasons to try to hide the reality of changing demographics, increased competitors, recent reduction in incomes, or a range of various other factors. This is why it is extremely crucial that you not depend entirely on a seller's word, yet instead, utilize the seller's response in conjunction with your overall due diligence. This will paint a much more reasonable image of the business's existing situation.

Existing Debts and Future Obligations

If the current entity is in debt, which numerous businesses are, then you will certainly need to consider this when valuating/preparing your offer. Lots of businesses borrow money so as to cover things such as stock, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can suggest that profit margins are too thin. Many businesses fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future commitments to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with suppliers that should be met or may result in penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the location attract brand-new clients? Most times, operating businesses have repeat consumers, which create the core of their everyday profits. Particular elements such as brand-new competition growing up around the location, roadway construction, as well as employee turn over can influence repeat consumers and adversely impact future profits. One essential thing to take into consideration is the location of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Undoubtedly, the more people that see the business on a regular basis, the greater the possibility to build a returning client base. A final idea is the general area demographics. Is the business situated in a largely populated city, or is it situated on the outskirts of town? How might the regional median household income impact future income prospects?