Business Overview

This business was started in December of 2017 after the owner had a negative personal experience with NEMT industry. The owner was able to see the future and build a business that met the needs of clients and their providers. Now almost 5 years in business, the organization has grown from very small footprint to servicing 14 counties and 50 cities across Texas.
New legislation changes in 2020 and 2021 have opened the doors for the business grow and be more profitable.
The operation is now staffed with 44 team members: 37 drivers, 3 dispatchers, 1 router, 1 fleet manager, 1 Compliance manager and 1 accountant.
The seller is active in the business managing the team, but is looking to focus their Consulting career in oil and gas. The seller believes someone with operational and management experience would be a great fit. For additional information please contact listing agent Andy Erskine at 713-400-7663 or andy.erskine@theloyaltybusinessbrokers.com.

Financial

  • Asking Price: $750,000
  • Cash Flow: $223,162
  • Gross Revenue: $1,852,020
  • EBITDA: N/A
  • FF&E: $375,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2017

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:340
  • Lot Size:N/A
  • Total Number of Employees:45
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

This is a leased location of 340 square feet with a Total Rent of $640. Lease ends 09/2021 with a one 3 year lease option. Seller is active in the business with 37 FT employees and 8 PT employees. Hours of operation are 4 AM to 9 PM, Monday - Saturday. $375,000 in FF&E included in Asking Price. Texas Medicad & Health Care Provider License Required.

Is Support & Training Included:

4 Weeks

Purpose For Selling:

Client has chemical engineer degree and want to pursue consulting career

Additional Info

The venture was established in 2017, making the business 5 years old.

The business has 45 employees and resides in a building with approx. square footage of 340 sq ft.
The building is leased by the business for $640 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons why people decide to sell businesses. However, the real reason vs the one they say to you might be 2 totally different things. For instance, they might claim "I have a lot of various commitments" or "I am retiring". For many sellers, these reasons are valid. But, for some, these may just be excuses to try to hide the reality of transforming demographics, increased competition, current reduction in profits, or a range of various other factors. This is why it is extremely crucial that you not depend completely on a vendor's word, however rather, utilize the seller's response along with your total due diligence. This will paint an extra reasonable image of the business's present circumstance.

Existing Debts and Future Obligations

If the existing entity is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your deal. Numerous companies finance loans in order to cover points like stock, payroll, accounts payable, etc. Bear in mind that in some cases this can mean that revenue margins are too tight. Numerous companies come under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may also be future obligations to consider. There may be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with suppliers that should be fulfilled or may cause fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the location draw in brand-new customers? Often times, companies have repeat consumers, which develop the core of their day-to-day revenues. Specific factors such as new competitors growing up around the area, roadway construction, and staff turn over can influence repeat customers and adversely affect future earnings. One important thing to take into consideration is the location of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Undoubtedly, the more people that see the business regularly, the better the opportunity to build a returning customer base. A final idea is the basic area demographics. Is the business located in a densely populated city, or is it situated on the outskirts of town? How might the local median home income effect future earnings potential?