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This accessibility systems business primarily caters to the elderly and disabled, but has a strong rental component business for temporary use of its ramps, lifts and other products for short-term. It is estimated that 30% of the business is commercial, while 70% is residential (30% of which would be derived from worker’s compensation claims and another 30% coming from insurance company referrals and hospital case workers). Excellent business referral sources such as hospital case managers, insurance company administrators, home advisors, as well as the franchisor are keys to the company’s success.
The is a homebased business, but trade materials are stored in a 2,000 square foot office / warehouse as well as an 1,800 square foot one, both of which are on a short-term leases, with total rent of $3,696 per month. All of the business’s furniture, fixture, equipment (including 5 vehicles), goodwill and franchise rights will be included in the sale. Approximately $220,000 in inventory will be sold at cost at close in addition to the purchase price. The business will remain a franchise with a 12.0% royalty.
The company could benefit from securing an elevator installation license, as this would allow them to engage in commercial lift installations. t could also benefit from having a general contractor in-house who could construct the concrete ramps that some
residences and many commercial jobs merit could also bolster revenues. A formal marketing plan to target key influencer and decision makers at hospitals, insurance companies, home health care agencies or referral sources, etc. could also yield tremendous dividends, as could appointing a small sales and installation crew within or close to San Francisco County to effectively capture that business. The company has a strong rental component. Rentals contributed to nearly one half of the 2017 revenues and are particularly profitable as they do not have an associated cost of goods sold material expense associated with this equipment. The company does not aggressively target the rental market in the same manner they do for disabled mobility sales because the target client base is not as clear, but they certainly could. Finally, the nature of work they perform complements scaffolding companies, roadwork workers or even freeway maintenance crews. The firm is sufficiently busy and does well enough that they have not ventures into these arenas; however, they remain potential opportunities for new management.
With an estimated 10,000 baby boomer retiring each day, wheelchairs, lifts and other forms of assisted access are likely to be in much higher demand, which could have a tremendous impact on the need for this company’s products and services.
While little direct competition exists for the company’s exact products, it does exist for alternate mobility solutions. Contractors who outfit resident’s home are one form of competition. Also, many commercial jobs utilize contractors who can build permanent concrete ramps. Small shops also exist, but they are often 1-2 person operations that do not have the product breadth or as professional of an offering. There are also home modification companies, however they often focus on larger jobs.
2 Weeks at 40 hrs/wk
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