Listing ID: 71502
Enter into the long-term care business with this great opportunity!
Renovated Assisted Living facility is licensed for 28 residents an adjacent two-family home serves as an independent living facility.
Established & Respected, Trained Staff in Place, Great Growth Opportunity!
Asking Price Includes Business & Real Estate
- Asking Price: $1,495,000
- Cash Flow: $223,000
- Gross Revenue: $679,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1982
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:6
- Furniture, Fixtures and Equipment:N/A
- Renovated 10,145 sq. ft. Assisted Living Facility - Two-family, 2-story duplex serves as the Independent Living Facility
Seller supports transitional training to aid in a smooth transition for all involved.
The company was started in 1982, making the business 40 years old.
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals resolve to sell companies. However, the real factor vs the one they tell you might be 2 completely different things. As an example, they might claim "I have a lot of various obligations" or "I am retiring". For many sellers, these reasons stand. But, for some, these may simply be justifications to try to hide the reality of changing demographics, increased competitors, recent decrease in revenues, or an array of other reasons. This is why it is very important that you not rely entirely on a seller's word, however rather, use the vendor's answer along with your overall due diligence. This will repaint a more reasonable picture of the business's existing circumstance.
Existing Debts and Future Obligations
If the current company is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your offer. Many businesses take out loans with the purpose of covering items like inventory, payroll, accounts payable, and so on. Keep in mind that in some cases this can indicate that earnings margins are too thin. Lots of businesses fall under a revolving door of taking on debt as a way to pay back 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 contracts with suppliers that must be fulfilled or may result in penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the area attract new customers? Many times, businesses have repeat consumers, which form the core of their day-to-day profits. Specific variables such as brand-new competitors sprouting up around the location, road construction, and also personnel turnover can impact repeat clients as well as adversely influence future profits. One vital point to think about is the location of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Obviously, the more individuals that see the business often, the better the opportunity to develop a returning client base. A final idea is the basic location demographics. Is the business situated in a largely inhabited city, or is it located on the outside border of town? Exactly how might the local typical household income effect future earnings potential?