Listing ID: 80727
Business Overview
Although the company was recently established in 2020, they have quickly built a reputation as being an extremely reliable and high quality provider of transportation to medical facilities, which is then reimbursed by Medicaid. The company has a consistent revenue base, as 80% is recurring and with the same customers. The schedule to provide services is relatively predictable as well, as routes are known two days ahead of when provided.
Financial
- Asking Price: $298,821
- Cash Flow: $177,527
- Gross Revenue: $414,195
- EBITDA: N/A
- FF&E: $42,900
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
The business operates in Ada, Bannock, Elmore and Twin Falls Counties, and is currently ran from the owner/operator’s home. The business can continue to be operated from home or anywhere, but the owner would want to be near the customer service coverage areas to ensure maintenance of vehicles and continued high quality and dependable service. (Home Based)
After establishing the business and growing from two drivers and expanding to cu
The strengths of the business include the recurring revenue base, and the strong reputation for providing reliable and high quality customer service. The low fixed costs and reliable revenue base provide a strong foundation for further growth. In addition, the high quality drivers provides an additional strength to the company and their reputation for reliable and strong customer service.
The ideal buyer would be another non-emergency Medical Transport business wanting to expand to the southwest section of the state or an existing business owner who is looking a new opportunity to expand and grow. A new owner can be involved as little as they want, making this also a good candidate for semi-passive ownership. THE POSSIBILITIES There is an opportunity to expand coverage to include wheelchair and stretcher services, which provide higher margins. With the relatively low amount of equipment required to generate revenue, the business can be scaled further by doubling the number of employees to further serve the existing service area, plus additional expansion into eastern Idaho.
This Business Is Home Based
Why is the Current Owner Selling The Business?
There are all types of reasons individuals choose to sell operating businesses. However, the real factor and the one they say to you might be 2 absolutely different things. For instance, they may claim "I have way too many various obligations" or "I am retiring". For many sellers, these reasons stand. But also, for some, these may simply be excuses to try to conceal the reality of changing demographics, increased competitors, current reduction in incomes, or a range of various other factors. This is why it is very important that you not count absolutely on a vendor's word, yet rather, make use of the seller's answer combined with your overall due diligence. This will paint a more realistic image of the business's current situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Many businesses borrow money so as to cover items like inventory, payroll, accounts payable, and so on. Keep in mind that occasionally this can imply that revenue margins are too small. Lots of companies fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future obligations to consider. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with suppliers that should be fulfilled or may lead to fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the area draw in brand-new customers? Many times, businesses have repeat customers, which create the core of their everyday earnings. Specific aspects such as brand-new competitors growing up around the area, roadway building and construction, and employee turnover can impact repeat consumers and also negatively influence future revenues. One essential point to take into consideration is the location of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more people that see the business often, the better the possibility to construct a returning client base. A final idea is the general area demographics. Is the business placed in a largely inhabited city, or is it located on the outside border of town? Just how might the neighborhood typical house income impact future revenue potential?
