This Is Highly Profitable In-Home Senior Care Business (franchise) with a solid client base and a track record of solid earnings and sales! Location Selling for ONLY 3.28x Earnings! This is an industry (In-Home Senior Care ) that is highly sought after, recession resistant, Covid resistant and its GROWING massively every year! In fact, the industry can’t even handle the client needs now!!
Further, this company has been on a major 4 year upward tear in sales and a restructuring of the company in 2022 led to their biggest year ever! Further the corrections that were made in 2022 with price increases, are stable and the company is still on track to exceed the sales/earnings in 2022 (its biggest year)…translation… 2022 was NOT just a flash in the pan!
The business focuses on sending caregivers to a client’s personal home/residence to help them with daily life 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. This particular location has an INCREDIBLE reputation in the community for providing high quality in-home care - and we think when you dive into this further, you’ll agree with that assessment.
SALES / SDE HISTORY
2019: 940,968 / $236,248
2020: 959,356 / $158,159
2021: 1,369,604 / $261,035
2022: $1,885,428 / $554,111
2023: $12,009,225 / $582,669
POSSIBLE DEAL STRUCTURE AND RETURN ON YOUR INVESTMENT (ROI):
• Total Purchase Price: $1,910,000 (*Appraised price - not an asking price)
• Down payment: $395,000 (21%)
• Current SDE (projections):$582,669
• Amount financed:$1,515,000
• Debt service per year (annual note payment): $247,864 (10 year at 10.75% approx.)
• SDE less debt service (annual note payment): $334,805
• Assume new owner wages a year: $170,000
• Remaining SDE (cash flow) after owner wages and paying annual debt service: $164,805
• So even after paying your debt service each year and taking out $170,000 in a wage you should still have $164,805 to do with as you wish, pay down debt early, take it out in additional wages or go to Vegas!
• Return on Investment: 42%....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%. The assumption is that you do actually work in the business similar to the way the current owner does now.
• This scenario does not include working capital and DOES assume you take over a key position in the business that will require you to be there around 30 to 40hrs 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.
*APPRAISED PRICE:
The owner had a WALL STREET LEVEL APPRAISAL completed on the business. Wells Fargo, US Bank, Radius Bank, CIBIC Bank and about 10 other major banks use this valuation firm to do their own internal appraisals for their underwriter teams. The point is this is a solid appraisal number.
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Non-Disclosure Agreement (NDA) is required. The sale is confidential which is why we are not publishing sensitive financial information or the name.
