Business Overview

Two Home Health Aide Agencies, both NON-SKILLED, within 10 minutes proximity for sale. Both well established with excellent reputations in high income neighborhoods. Combined revenue is slightly over 3mm with and adjusted EBITDA of potentially 580k. They have more than 100 aides combined in rotation. The smaller agency operation can be moved to the larger location which is situated ideally across the street from the Metro North station.

This is the perfect opportunity to purchase both companies which would yield a sum greater than its parts.

Ask Price $1.375M + $500k = $1.875M
Revenue: $2.25M + $765k = $3.015M
Profit: $342k (SDE) + $237k (Gross Profit) = $579k

Financial

  • Asking Price: $1,875,000
  • Cash Flow: N/A
  • Gross Revenue: $3,015,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A
Is Support & Training Included:

Will provide

Purpose For Selling:

Retirement

Opportunities and Growth:

Potential to grow both companies

Why is the Current Owner Selling The Business?

There are all types of reasons why people decide to sell operating businesses. Nonetheless, the real factor vs the one they tell you might be 2 entirely different things. As an example, they may state "I have too many various commitments" or "I am retiring". For many sellers, these factors are valid. But also, for some, these might just be reasons to attempt to hide the reality of transforming demographics, increased competition, recent reduction in revenues, or a range of various other factors. This is why it is really crucial that you not depend entirely on a seller's word, yet rather, use the seller's solution along with your general due diligence. This will paint a more reasonable picture of the business's existing circumstance.

Existing Debts and Future Obligations

If the current entity is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous businesses take out loans so as to cover things such as inventory, payroll, accounts payable, etc. Remember that in some cases this can mean that profit margins are too small. Lots of companies fall under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may likewise be future obligations to consider. There might be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with vendors that have to be fulfilled or may lead to penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the area draw in brand-new consumers? Often times, companies have repeat clients, which create the core of their everyday profits. Specific factors such as new competition growing up around the area, road building and construction, as well as staff turn over can affect repeat consumers and negatively affect future revenues. One important thing to take into consideration is the placement of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Clearly, the more individuals that see the business regularly, the greater the opportunity to construct a returning consumer base. A last idea is the general location demographics. Is the business situated in a densely populated city, or is it situated on the edge of town? Exactly how might the local typical home income influence future earnings prospects?