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HIGHLY SOUGHT AFTER BUSINESS MODEL - SOLID SENIOR CARE BUSINESS with great sales serving Union County and the surrounding area. The company has many active clients and a huge roster of high-quality caregivers, as well as trained/seasoned staff. The business has an incredible reputation in the community, providing in-home care to seniors, assisting them with activities of daily living, including companion care and hands-on personal care services.
Company is running a low margin of around 12% (This is EASILY fixed...We sell these all the Time -- Contact us to discuss). Seller has had serious health issues and wishes to retire. This company is primed and ready for a new owner who can run the company even slightly better and get that margin up to around 20%, which is where we see these most of the time. This 20% of $1,301,425 in sales would turn into about $260,285 in earnings for you (before any debt service) vs the $154,000 it’s hitting right now. We have hundreds of income statements from sales we’ve done in this industry to support this claim and if/when you’re more engaged in the project we can have a discussion about those to show you what you can do with this company. And in fact, we just finished a sale with this same brand where the margin was 27%! ....Bottom line, we’d love to see you buy this company, fix it, and sell it in a couple of years for around $700k (which would be very likely). That’s a $250k (before selling commissions and paying off your debt) to be made AND you’d take out a nice salary in the meantime. Check out our thought process with your financial advisor, but I think we can make a solid argument to support this and your financial advisor would probably agree. This business is a well-established franchise resale with active clients, sales, cash flow, staff, etc.
POSSIBLE DEAL STRUCTURE:
•Projected ROI of 23%
•Total purchase price: $450,000
•Down payment: $140,000
•SDE (what you would earn in the business): $154,000
•Amount financed $310,000 ($450,000 - $140,000 = $310,000)
•Debt service per year (annual note payment): $42,051 (10 years at 6.00% apprx.)
•SDE less debt service: $111,949 ($154,000 – $42,051 = $111,949)
•Assume - New owner to pull $80,000 a year out of the business in wages
•Remaining SDE (cash flow) after owner wages and paying annual debt service (annual $ return on capital) = $31,949 ($154,000 – $80,000 - $42,051 = $31,949)
•Return on investment or your return on injected capital (your down payment) year after year = 23%! ($31,949/$140,000) …Tough to get this in the stock market!
•This scenario does not include working capital.
•Important: Do not take our word for it on the investment information, call and meet with your accountant and make sure he/she agrees with the outline above. Do not make any financial investment into this business where your money could be at risk until you agree with your financial advisors opinion and are comfortable with the presented numbers from the seller.
SDE: $153,151* 4 year weighted average
Sales: 2017: $966,447
Sales – 2018: $888,958
Sales – 2019: $1,269,951
No Experience In The Medical Industry Is Needed. Extensive training and ongoing support provided. Seller will provide training during transition also.
>>>>>>Non-Disclosure Agreement (NDA) is required. The sale is confidential which is why we are not publishing sensitive financial information or the name. Information provided to qualified buyers with NDA in place.
*Gross Revenue and Cash Flow stated by seller. All information, data, financials, valuations, appraisals, inventory, FFE/Assets/Equipment, real estate values, etc. must be verified with the seller and buyer's own professional independent advisors, CPA, etc.
CONTACT US TODAY For the NDA For Further Details. We will email the short 3-minute online NDA form shortly after we receive your request. Please be sure to check your spam/junk folders also.
Established, furnished office. Office furniture, equipment, etc. Staff, managers, caregivers. Well-maintained office Serving Williamsport, Muncy, Lewisburg, Danville, Middleburg, Mifflinburg, Selinsgrove and Sunbury.
Implement aggressive marketing/advertising strategies. Build referral sources. Build community relationships. Diversify services. Operate the business on a daily basis – oversee the staff, etc.; Attend industry trade shows; Join business associations/chambers. ***********************************Why is there a boom in the service area? --- Beyond elder care. An increasing number of the elderly couples and singles are living fulfilling lives on their own. As they age, however, they will require more and more services to help them deal with day-to-day living. Some of the most successful businesses of the next few years will be ones that will provide cost-efficient services, both medical and non-medical, for the aging population of the United States. ****************************************The senior Care Environment --- Long-term Care Demand and Our Aging Population - The market for long-term care is rapidly increasing. By the year 2030, about 1 in 5 Americans will be elderly. As of 2020, the U.S. population over the age of 65 projected to grow to 55 million while the population over the age of 85 projected to increase by four times to over 13 million. As age increases, the need for long-term care also increases. ****************************************Shortage of Nurses --- There is an acute shortage in the United States of registered nurses. A recent study published by the American Hospital Association states that the average age of a nurse is 45 years old and that less than 10% of all nurses are under the age of 30. This coupled with the dynamics of an aging population and increased government requirements for staffing at hospitals and nursing homes have created a substantial demand for in-home services. It is believed that competition for qualified personnel will continue to increase and that benefits and methods of "sharing the success" with employees will make in-home care companies an attractive employer in the marketplace and allow them to be the most attractive answer when individuals are looking for employment. **************************************************** Why Would Nurses Become Contract Workers Instead of Full-time Employees? --- Many nurses are switching from demanding shift positions in traditional settings to contract staffing. For a comparable salary and benefits, an employee has more flexibility and control over their schedule, vacations and holidays and less risk. Some nurses enjoy doing a variety of jobs in which they can use many of their skills and others prefer to use one specialty, contract work allows these options.
Franchise Business Review lists senior service businesses in the top six recession-proof industries. The senior care industry is growing and will continue to grow with the senior population expecting to grow by 25% over the next 10 years. More recently driven by concerns brought on by COVID-19 the industry has seen an increased interest in in-home services as seniors and their families question the safety of moving into a group living situation such as a senior apartment, assisted living or nursing home. Additionally, those in the hospital are choosing to be released home with non-medical in-home care services instead of being transferred into a rehabilitation facility due to safety concerns. More seniors are now opting to age in place and bring help in or move in with family and hire additional support services to come into their family home. This is in addition to an earlier survey conducted by AARP that stated that at that time (prior to COVID) 86% of seniors wanted to age in place. Families also move their loved one out of assisted living and into their own home, hiring additional assistance due to their concerns about the safety of their loved one living in a group setting. Changes in the payment reimbursement model in January of 2020 for hospitals and skilled nursing has also increased client flow. Facilities are no longer able to keep patients as long as they once were under Medicare guidelines which has led to an increase in the need for in-home care.
No experience in the medical industry or home health industry is needed. Extensive training/support provided.
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