Listing ID: 82271
Independently owned and family operated home care agency. Licensed in Iowa and Illinois, with long term established referral networks.
2020 annual sales of $550K was down year, due to COVID.
Business did over $1MM in sales in 2017 and 2018 with $180-200K in pre-tax profits, including paying the owner’s full time salary for part-time management.
Five year weighted average SDE = $100K
- Asking Price: $390,000
- Cash Flow: $100,000
- Gross Revenue: $550,000
- EBITDA: N/A
- FF&E: $20,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 1999
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,620
- Lot Size:N/A
- Total Number of Employees:10
- Furniture, Fixtures and Equipment:N/A
Leasing two offices, main office in Iowa, satellite office in Illinois.
Strong admin staff with decades experience and RN status.
The venture was established in 1999, making the business 23 years old.
The business has 10FT, 20PT employees and is located in a building with estimated square footage of 1,620 sq ft.
The property is leased by the company for $1,870 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people resolve to sell companies. Nonetheless, the true factor and the one they tell you might be 2 totally different things. As an example, they may say "I have way too many various responsibilities" or "I am retiring". For many sellers, these reasons are valid. But, for some, these may just be reasons to attempt to conceal the reality of changing demographics, increased competition, recent reduction in earnings, or a variety of other factors. This is why it is extremely essential that you not depend completely on a vendor's word, but rather, use the seller's solution together with your general due diligence. This will paint an extra realistic image of the business's current circumstance.
Existing Debts and Future Obligations
If the existing business is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous operating businesses finance loans with the purpose of covering things such as inventory, payroll, accounts payable, so on and so forth. Remember that occasionally this can mean that revenue margins are too thin. Many businesses fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to consider. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with suppliers that should be satisfied or might lead to penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area draw in brand-new consumers? Often times, operating businesses have repeat clients, which develop the core of their day-to-day profits. Particular elements such as new competition growing up around the area, road building and construction, and also employee turn over can impact repeat consumers as well as negatively affect future revenues. One crucial point to take into consideration is the placement of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Clearly, the more people that see the business on a regular basis, the higher the possibility to construct a returning client base. A last thought is the basic area demographics. Is the business situated in a densely populated city, or is it located on the outskirts of town? Just how might the neighborhood mean house earnings effect future earnings prospects?