Listing ID: 76825

Business Overview

Three Residential Intermediate Care Facilities with business and 3 residential properties and a total of 30 beds in Ventura 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 $4.2M includes three residential care facilities (the business) as well as three residential homes (the real estate) in a prime area of Ventura 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 HAVE BEEN pre-qualified for SBA finance for a qualified buyer with strong credit and related industry experience. SBA will finance both the business and the real estate as one loan with 15 – 50% down with 25-year amortization.

The seller also owns 3 additional facilities with the real estate in Kern County that are for sale at $1,750,000. That project has NOT been pre-approved for SBA finance, but seller will provide short term seller finance in order for a buyer to file 2 years of tax returns and refinance. An SBA lender is in place to assist with the refinance. Contact Broker for additional information and an 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: $4,200,000
  • 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 venture was founded in 1993, making the business 29 years old.

Why is the Current Owner Selling The Business?

There are all kinds of reasons people resolve to sell operating businesses. Nevertheless, the real factor vs the one they say to you might be 2 totally different things. As an example, they may state "I have too many various obligations" or "I am retiring". For numerous sellers, these factors stand. However, for some, these may just be excuses to attempt to hide the reality of changing demographics, increased competitors, recent reduction in incomes, or a variety of other factors. This is why it is really vital that you not depend completely on a seller's word, however instead, utilize the seller's response along with your overall due diligence. This will paint a more reasonable image of the business's present circumstance.

Existing Debts and Future Obligations

If the current company is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your deal. Numerous companies borrow money so as to cover items like supplies, payroll, accounts payable, etc. Remember that sometimes this can mean that earnings margins are too small. Lots of organisations fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may additionally be future obligations to take into consideration. There may be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with suppliers that must be satisfied or might lead to charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the location bring in new clients? Many times, businesses have repeat customers, which create the core of their everyday earnings. Particular elements such as new competition sprouting up around the location, roadway building and construction, and personnel turnover can influence repeat customers and also negatively impact future revenues. One essential point to take into consideration is the location of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Certainly, the more people that see the business on a regular basis, the higher the chance to construct a returning client base. A final idea is the basic area demographics. Is the business situated in a largely inhabited city, or is it located on the outskirts of town? Exactly how might the local median house earnings influence future income potential?