Listing ID: 71523
Home health care business model for seniors with health service delivery provided by CNAs.
The business has eighteen CNAs on staff as well as part-time CNAs.
Business started in 2006.
Staff includes Operations Manager and four other full time staff (includes Owner).
Owner is active but only on a part-time basis.
Who should buy this business?
Owner-operator seeing income from a growing long-term market.
Strategic operator seeking to add income to a similar business model.
Experienced manager ready to own their own business.
This business is part of a proven national franchise and operates from a centrally located leased office. Buyer will be trained by franchisor and Seller.
Revenues in 2020 were $983,180. Verifiable CPA prepared financial statements.
Transaction requires approval by franchisor and an estimated transfer fee of $26,100.
- Asking Price: $429,000
- Cash Flow: $147,365
- Gross Revenue: $983,180
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2006
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,200
- Lot Size:N/A
- Total Number of Employees:23
- Furniture, Fixtures and Equipment:N/A
Third party owned leased office
Two weeks equivalent of management transition.
Similar franchised and private models but many do have CNAs on staff.
1. Expand geographically to two major counties in Rhode Island 2. Add CNAs via existing relationships with CNA recruiting marketers.
The business was started in 2006, making the business 16 years old.
The business has 23 employees and is situated in a building with estimated square footage of 1,200 sq ft.
The property is leased by the business for $2,875 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals decide to sell operating businesses. Nevertheless, the real reason and the one they say to you might be 2 completely different things. For instance, they may state "I have too many various obligations" or "I am retiring". For many sellers, these factors are valid. But also, for some, these might simply be excuses to attempt to conceal the reality of changing demographics, increased competitors, recent decrease in earnings, or a variety of other reasons. This is why it is very essential that you not depend absolutely on a vendor's word, however rather, make use of the vendor's answer along with your general due diligence. This will repaint a more sensible picture of the business's existing circumstance.
Existing Debts and Future Obligations
If the current company is in debt, which many companies are, then you will certainly need to consider this when valuating/preparing your deal. Lots of businesses take out loans so as to cover points such as supplies, payroll, accounts payable, and so on. Keep in mind that occasionally this can imply that revenue margins are too tight. Lots of companies fall under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future commitments to think about. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with vendors that must be fulfilled or might result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the area draw in brand-new customers? Many times, companies have repeat customers, which develop the core of their everyday earnings. Particular elements such as new competition sprouting up around the location, road building, and staff turn over can influence repeat clients and also negatively impact future profits. One important thing to consider is the area of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Obviously, the more people that see the business often, the higher the possibility to build a returning consumer base. A last thought is the general area demographics. Is the business situated in a largely populated city, or is it situated on the outside border of town? How might the neighborhood typical household income effect future earnings prospects?