Listing ID: 82836
This award-winning “Provider of Choice” and “Employer of Choice” of clinical/non-clinical in-home care and medical staffing services has weathered the pandemic well. The Company is well positioned to tap the ever-expanding demand as families reconsider placing their elderly loved ones in group care facilities where the infectious disease risk is higher. Instead, families are opting for the safer alternative of one on one, home based care.
The retiring Managing Owner seeks to pass the baton to an aspiring Managing Owner capable of preserving the Company’s compassionate care legacy and culture centered around the Three Ps- Purpose, Passion and Profit. The purpose is to improve lives. The passion is an organization that loves what it does. The profit is a key enabler of best in class caregivers.
The Company serves primarily self-pay clients that either pay out of pocket or with the help of a long-term care insurance policy. The primary source of new clients is national advertising, a powerful word of mouth apparatus from its reputation for reliability and a recurring referral provider network in the local medical community.
- Asking Price: $975,000
- Cash Flow: $260,666
- Gross Revenue: $2,373,359
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2010
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:55
- Furniture, Fixtures and Equipment:N/A
The Company’s highly effective office team of nine operates from a centrally located office facility in Central New Jersey.
To preserve its unique legacy while taking care of their employees and referral providers that have taken such good care of them, current ownership will be fully committed to the new owner’s success.
Through accreditation and Registered Nurse (RN) oversight, the Company differentiates itself from its competitors by delivering common services uncommonly well. In 2021, it was nationally recognized as a “Provider of Choice” by Home Care Pulse.
By 2030, all 83M US Baby Boomers will be age 65 or older, the vast majority of whom intend to age in place.
The company was established in 2010, making the business 12 years old.
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals decide to sell operating businesses. Nevertheless, the real factor vs the one they tell you may be 2 completely different things. For instance, they might state "I have too many various responsibilities" or "I am retiring". For lots of sellers, these reasons are valid. But, for some, these may simply be reasons to try to hide the reality of transforming demographics, increased competitors, recent decrease in incomes, or a range of other factors. This is why it is extremely important that you not depend totally on a vendor's word, but rather, make use of the vendor's answer in conjunction with your general due diligence. This will paint a more reasonable image of the business's current scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which lots of businesses are, then you will need to consider this when valuating/preparing your offer. Lots of operating businesses borrow money with the purpose of covering things like supplies, payroll, accounts payable, and so on. Bear in mind that occasionally this can mean that profit margins are too tight. Many businesses come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may also be future commitments to think about. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with suppliers that need to be satisfied or may cause fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area draw in new consumers? Often times, companies have repeat clients, which develop the core of their everyday profits. Specific aspects such as brand-new competitors sprouting up around the area, roadway construction, as well as employee turn over can affect repeat consumers as well as negatively affect future incomes. One vital point to think about is the location of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Certainly, the more people that see the business on a regular basis, the higher the opportunity to build a returning customer base. A last thought is the general location demographics. Is the business placed in a densely populated city, or is it situated on the outside border of town? How might the local mean house earnings influence future revenue prospects?