Listing ID: 82840

Business Overview

This three-state provider of clinical/non-clinical in-home care, hospice and medical staffing services has achieved substantial earnings growth in 2020 and 2021 despite the pandemic and worker shortage.

The Company is riding the wave of expanding demand for home-based care in part due to families reconsidering placing their elderly loved ones in group care facilities where the infectious disease risk is higher. Instead, families are opting for the safter alternative of one on one, in-home care.

The existing franchisee seeks to pass the baton to a highly effective Investor-Operator capable of preserving the Company’s compassionate care legacy while keeping it on the high growth track.

Fueled by an excellent reputation, the company’s primary client acquisition source is a powerful word of mouth apparatus and referral provider network.

Financial

  • Asking Price: $7,950,000
  • Cash Flow: $1,949,108
  • Gross Revenue: $19,529,631
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 1995

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:375
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Serving more than 700 clients in California and two border states, the Company is headquartered in Northern California with several centrally located branch offices.

Is Support & Training Included:

To preserve its unique legacy while taking care of their employees and referral providers, current ownership will be fully committed to the new owner’s success.

Purpose For Selling:

Retirement

Pros and Cons:

With a large platform built on medical care, personal care, hospice and staffing, the Company is one of the few one-source solutions for in-home care in the markets it serves. The Company differentiates itself my delivering common services uncommonly well.

Opportunities and Growth:

By 2030, all 83M US Baby Boomers will be age 65 or older.

Additional Info

The venture was started in 1995, making the business 27 years old.

Why is the Current Owner Selling The Business?

There are all kinds of reasons individuals choose to sell operating businesses. Nonetheless, the true factor vs the one they tell you might be 2 totally different things. As an example, they may say "I have too many other obligations" or "I am retiring". For many sellers, these factors stand. But also, for some, these might just be justifications to try to conceal the reality of altering demographics, increased competition, recent reduction in incomes, or a variety of various other reasons. This is why it is really important that you not count completely on a seller's word, but rather, make use of the vendor's solution along with your general due diligence. This will paint an extra practical image of the business's existing circumstance.

Existing Debts and Future Obligations

If the current company is in debt, which numerous businesses are, then you will certainly need to consider this when valuating/preparing your offer. Numerous companies borrow money so as to cover things like stock, payroll, accounts payable, and so on. Remember that sometimes this can imply that profit margins are too small. Many companies fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may additionally be future obligations to think about. There may be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with suppliers that have to be satisfied or might lead to charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the area attract brand-new clients? Most times, businesses have repeat customers, which develop the core of their everyday revenues. Certain factors such as brand-new competitors growing up around the area, roadway construction, and employee turn over can impact repeat consumers as well as negatively impact future revenues. One essential thing to think about is the placement of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Clearly, the more individuals that see the business often, the better the chance to develop a returning consumer base. A last thought is the basic area demographics. Is the business situated in a densely populated city, or is it situated on the outside border of town? Just how might the neighborhood typical family income impact future revenue prospects?