Business Overview

The Company was formed in 2006 to provide skilled and unskilled care in the home, in Southeastern New Mexico. The Company is owned 100% by a single owner. The owner has recently moved to Lubbock, Texas and typically spends a day or two per week in the office.

The Company is currently licensed in the State of New Mexico, but the owner is considering becoming licensed in Texas and opening a second location in Lubbock.
The company employees approximately 30 individuals, both full time and part time, consisting of Registered Nurses, Physical Therapists, Speech Therapists, Occupational Therapists, to list a few.

For the year ended December 31, 2021, the Company had Revenue of $2.6M with EBITA of $586k; for December 31, 2020, the Company had Revenue of $2.8M with EBITDA of $553k; and, for December 31, 2019, the Company had Revenue of $2.3M with EBITDA of $470k.

The owner is interested in pursuing a transaction with the right person or company. The owner is willing to remain with the Company for a transition period and/or to assist with expanding operations into Texas, if so desired.

Financial

  • Asking Price: $3,500,000
  • Cash Flow: N/A
  • Gross Revenue: $2,800,000
  • EBITDA: $600,000
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2006

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:30
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The location/facilities are owned by the business owner outside of the company and can be made available for sale if a buyer would be interested.

Is Support & Training Included:

Seller will work with buyer for a smooth transition, and remain in some capacity as desired.

Purpose For Selling:

Pursue other opportunities

Pros and Cons:

Long standing relationships in the industry and community. Typically first call for health care facilities and providers in the surrounding area.

Opportunities and Growth:

Potential for growth into Texas market. Seller is willing to work with buyer on expansion efforts if so desired.

Additional Info

The business was established in 2006, making the business 16 years old.

The company has 30 employees and resides in a building with approx. square footage of N/A sq ft.
The property is leased by the company for $0.00

Why is the Current Owner Selling The Business?

There are all sorts of reasons why people resolve to sell companies. However, the genuine reason vs the one they say to you may be 2 totally different things. For instance, they might state "I have too many other commitments" or "I am retiring". For numerous sellers, these factors are valid. But also, for some, these might simply be justifications to try to conceal the reality of altering demographics, increased competitors, current reduction in earnings, or a range of other reasons. This is why it is really crucial that you not depend entirely on a vendor's word, however rather, make use of the seller's response along with your general due diligence. This will repaint a much more reasonable image of the business's current situation.

Existing Debts and Future Obligations

If the current company is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous companies finance loans in order to cover items like supplies, payroll, accounts payable, and so on. Bear in mind that occasionally this can indicate that profit margins are too thin. Numerous businesses fall under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may likewise be future obligations to think about. There might be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with suppliers that need to be met or might result in penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the area draw in brand-new clients? Often times, operating businesses have repeat consumers, which form the core of their everyday profits. Particular aspects such as brand-new competition growing up around the location, roadway construction, as well as staff turn over can influence repeat consumers and also adversely influence future profits. One essential point to consider is the location of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Clearly, the more individuals that see the business often, the greater the chance to develop a returning consumer base. A final idea is the general area demographics. Is the business located in a largely inhabited city, or is it located on the edge of town? How might the neighborhood typical household earnings effect future income potential?