This “in-home” senior care business (franchise resale) has a huge government contract that they've had for years. However, this is not the only revenue generator that the company could focus on. The primary business model has been put on the back burner to focus on the government contract, But this program, while stable, yields a much lower profit margin. The growth potential for the primary business model, which is private-pay in-home senior care, has a much better profit margin, because the rates are higher, and the sales from doing private pay could reach as high as they're currently doing now, if not higher. Working out the private pay program and continuing on with the current program could literally put you into the $8 million sales range if not higher. And with just a bit better profit margin on $8 million in sales, this company could be generating closer to $1.2 million in discretionary earnings a year. Have a discussion with us and we can pencil this out for you in detail and then have those results reviewed by your financial advisor before you put any money at risk on this company, but we feel the numbers will hold up.
APRAISED PRICE: Additionally, we used the same appraiser that most of the major banks use in their underwriting departments-banks like Wells Fargo, US Bank, CIBC, Live Oak etc. so when you get our data, you’ll know the numbers have been crunched. We only go to market at the appraised price because we know, you as a buyer, don’t want to mess around with willy-nilly broker opinion of values… you want solid numbers and that’s what you’ll get when reviewing this project.
THE COMPANY: The business focuses on sending caregivers to a client’s personal home/residence to help them with daily activities, such as light cleaning, food preparation, grocery shopping, walking with them and just basic companionship. The idea is to keep the individual in their own home rather than having to go into an Assisted Living Facility. Note: This is not an absentee/semi-absentee operated business. The franchisor requires an owner work in the business daily, about 30-40 hours/week.
- POSSIBLE DEAL STRUCTURE AND RETURN ON YOUR INVESTMENT (ROI):
- Projected ROI of 46% (Return on Investment)
- Total purchase price: $1,710,000 (this is the Appraised price, not an 'asking' price)
- Down payment: $342,000 (20%)
- Current SDE (cash flow of the business/what the business makes in earnings): $493,058 (Weighted average SDE, as of the valuation date July 31, 2026)
- Amount financed: $1,368,000
- Debt service per year (annual note payment): $212,419 (10 years at 9.50% apprx.)
- SDE less debt service: $280,639
- Assume - New owner to pull $125,000 a year out of the business in wages.
- Remaining SDE (cash flow) AFTER owner wages and paying annual debt service: $155,639. So even AFTER paying your debt service and taking out $125k in a wage, you should still have $155,639 to do with as you wish, pay down the debt early, take it out in total wages, or go to Vegas!
- 46% is Your Return on Investment; Annual return of investment on your injected capital/down payment each year. A great year in the stock market would be 15% to 20% and the average is about 7%.
- This scenario does Not include working capital and DOES assume you take over a key position in the business that will usually require you to be there around 30 to 40 hours a week. You can normally secure the working capital as a line of credit from the bank as part of your loan structure.
- 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 advisor's opinion and are comfortable with the presented numbers from the seller.
CONTACT US Today for the NDA. We will email you the short online form and contact you once it’s received.
