Listing ID: 82951
Business Overview
Principle Business Advisors presents this Region 1 Home Health Agency For Sale in New Orleans, Louisiana. The license has clean provider numbers and the business has no outstanding debt. Region 1 includes New Orleans, Jefferson, St. Bernard, and Plaquemines parishes. Louisiana currently has a moratorium on Home Health licenses. Due to the moratorium, there is a significant barrier to entry, and as consolidation continues the number of competitors has decreased. This Home Health Agency is almost 30 years old. The owner has well-established referral sources for new patients and has had a census as high as 200 patients in years past. However, current management is not properly capitalized. They estimate they are turning away an average of ten patients a month. They are looking for an outright sale of the agency with a referral contract to pay them by patient referred or a management partner to pay them a percentage as the business is built up for later sale with a higher census. Current services include nursing care, physical therapy, occupational therapy, speech pathology, and much more. The owner is approaching retirement age and is looking to spend more time with family. They are open to some owner financing for a well-qualified buyer.
Come meet the owner, learn about this rewarding business, and make and before it’s gone!
For more information, please contact the listing broker, Joel Duran, at (504) 313-1038.
Financial
- Asking Price: $300,000
- Cash Flow: N/A
- Gross Revenue: $50,000
- EBITDA: N/A
- FF&E: $10,000
- Inventory: $1,000
- Inventory Included: Yes
- Established: 1993
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:2
- Furniture, Fixtures and Equipment:N/A
The business is currently housed in a small office. It could easily be relocated to anywhere within Region 1.
The owner is willing to stay and work with a buyer for the right compensation. They are looking for an outright sale of the agency with a referral contract to pay them by patient referred or a management partner to pay them a percentage as the business is built up for later sale with a higher census.
To spend more time with her family.
As companies have consolidated, they have also focused on providing specialized services. Medicare, Medicaid, other government third-party payers and contracted private insurance or commercial payers are popular in the industry. Medicaid reimbursements, the second-largest source of industry revenue, have also been subject to federal reductions. Home care providers have benefited from an aging population. The healthcare reform legislation has provided numerous benefits and drawbacks to home care. This high demand for staff is projected to increase nurses' and physical therapists' ability to command higher wages and benefits. Healthcare reform has expanded access to insurance for some patients, but many states have not expanded access to federal healthcare. A large portion of revenue for medical services provided by this industry comes from Medicare, Medicaid and private insurance. Increased competition has led to some consolidation among the smaller regional brands. Internal competition is increasing via recruiting skilled and qualified employees. As demand for services grows due to the increase in the senior target demographic, the number of enterprises is expected to grow. The franchise business model will continue to gain momentum, attracting entrants. Competition may drive down prices charged for non-medical services, pressuring profit margins. The number of adults older than 65 is expected to grow, accelerating industry growth.
Despite continued staffing challenges, home care is on the rise. Several emerging trends will define that ascent in the year ahead. Some of those trends will revolve around home care’s role in new care delivery models designed to treat higher-acuity patients. Others will have to do with shifts in the home care market itself and the broader U.S. economy, which is still recovering from the impact of the COVID-19 virus....Home Health Care News offers its top home care predictions for the coming 12 months below.
Additional Info
The venture was established in 1993, making the business 29 years old.
The deal will include inventory valued at $1,000, which is included in the listing price.
The business has 2 employees and is located in a building with estimated square footage of N/A sq ft.
The real estate is leased by the company for $1,500 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons why people choose to sell operating businesses. Nonetheless, the real factor and the one they say to you might be 2 entirely different things. For instance, they might claim "I have a lot of other responsibilities" or "I am retiring". For numerous sellers, these factors stand. However, for some, these might simply be excuses to attempt to conceal the reality of transforming demographics, increased competition, recent reduction in earnings, or a variety of other factors. This is why it is really essential that you not depend completely on a seller's word, yet instead, utilize the seller's response in conjunction with your total due diligence. This will repaint an extra reasonable picture of the business's current circumstance.
Existing Debts and Future Obligations
If the existing business is in debt, which many businesses are, then you will need to consider this when valuating/preparing your deal. Many operating businesses take out loans in order to cover things like inventory, payroll, accounts payable, and so on. Keep in mind that in some cases this can mean that revenue margins are too thin. Numerous organisations fall under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may also be future commitments to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with vendors that must 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 location attract brand-new consumers? Many times, businesses have repeat customers, which develop the core of their day-to-day profits. Particular factors such as brand-new competitors sprouting up around the location, road construction, and also personnel turnover can affect repeat customers and negatively influence future earnings. One important thing to take into consideration is the area of the business. Is it in a highly trafficked shopping mall, or is it concealed from the highway? Clearly, the more individuals that see the business often, the higher the possibility to develop a returning consumer base. A last thought is the general area demographics. Is the business placed in a largely inhabited city, or is it located on the outside border of town? How might the neighborhood median household income influence future earnings potential?
