Listing ID: 76817

Business Overview

Residential Intermediate Care Facilities with business and 3 residential properties and a total of 18 beds in Kern County. The facilities are dedicated to providing a comfortable, caring, and supervised living arrangement in a family home setting. Services provided include room, board, social activities, three daily meals, scheduled transportation, 24 hour supervision and assistance with activities of daily living.

The asking price of $1,750,000 includes three residential care facilities (the business) as well as three residential homes (the real estate) in Kern County. This is priced for an immediate sale. The business and property are in Receivership and this is a court order sale. The asking price reflects a reduced value given that the facilities have not been operating at 100% occupancy. The receiver has hired a third-party person to oversee the facilities and business until it is sold. Most books and records are available but historical information may be limited. This is a great opportunity for an experience operator to purchase these facilities and bring them up to 100% occupancy which according the various sources is doable given the current demand in the marketplace and what other facilities are experiencing.

The facilities and properties WILL NOT qualify for SBA finance or bank finance. Seller will provide short term seller finance for a qualified buyer with industry experience and a reasonable down payment for the 3 facilities and the real estate. A SBA lender is in place to refinance the project after 2 completed tax returns are filed showing the business has improved. Further details on this will be provided once a confidentiality agreement and proof of funds have been submitted to Broker.

The seller also owns 3 additional facilities with the real estate in Ventura County that are for sale at $4.2M. That project has been pre-approved for SBA finance with 20%+/- down for a qualified, industry buyer. Contact Broker for additional information and a NDA if interested.

Please note this is a confidential matter and only serious buyers with industry experience should inquire. No additional information will be provided until a Confidentiality Agreement, background information showing industry experience and proof of funds in the amount of $900,000 has been submitted. Please hit the reply button or the Contact Seller button or email Matt at info@mabusinessadvisors.com or call ( 818 ) 999-9621 to receive a confidentiality agreement and to learn more about this opportunity.

Financial

  • Asking Price: $1,750,000
  • Cash Flow: N/A
  • Gross Revenue: N/A
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: Yes
  • Established: 1993

Detailed Information

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

3 Single Family Residences – 1 Story

Purpose For Selling:

Court Order Sale

Pros and Cons:

Demand for these facilities is strong.

Opportunities and Growth:

Great opportunity to expand and grow given that these facilities are not operating at 100% occupancy which is common in the industry.

Additional Info

The company was established in 1993, making the business 29 years old.

Why is the Current Owner Selling The Business?

There are all sorts of reasons individuals choose to sell operating businesses. Nonetheless, the real reason vs the one they say to you may be 2 entirely different things. As an example, they may say "I have too many other commitments" or "I am retiring". For lots of sellers, these factors are valid. But also, for some, these may simply be excuses to attempt to conceal the reality of altering demographics, increased competitors, current decrease in earnings, or a variety of other reasons. This is why it is very important that you not depend entirely on a vendor's word, however instead, make use of the seller's answer along with your total due diligence. This will repaint a more realistic image of the business's existing situation.

Existing Debts and Future Obligations

If the current business is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Many businesses take out loans so as to cover things like supplies, payroll, accounts payable, etc. Remember that occasionally this can mean that earnings margins are too thin. Numerous businesses come under a revolving door of taking loans 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 structure where the business resides. The business may have existing contracts with suppliers that have to be satisfied or might result in fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the location draw in new customers? Many times, companies have repeat customers, which develop the core of their day-to-day profits. Specific aspects such as brand-new competitors growing up around the location, roadway construction, and employee turnover can impact repeat consumers as well as negatively influence future profits. One important point to take into consideration is the location of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Certainly, the more individuals that see the business on a regular basis, the greater the chance to develop a returning client 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 neighborhood median family income influence future earnings prospects?