Business Description
Training/Support Provided.
This non-medical IN-HOME senior care franchise has been on a major 4-year upward tear from 2020 through 2023 AND THE SELLER HAS BEEN VERY RELUCTANT TO SELL IT as clearly the cashflow is excellent. Later, when we discuss the business details with you, you’ll understand why—personal matters. With a combination of many, many private pay clients and a heavy mix of VA (Veterans Administration-recently secured contract), this company has a great margin, which is running about 37.51% of sales! For perspective, a good margin for this industry would be around 25 to 28%. And so you understand where this margin comes from, we’re talking about dropping 37.5% of gross sales to earnings (we call it SDE or seller’s discretionary earnings). Further, this franchise brand has been around for years and has hundreds of locations around the country.
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's opinion of values. you want solid numbers and that’s what you’ll get when reviewing this project. Contact us for the short NDA form.
This is an industry that is highly sought after, recession-resistant, COVID-resistant and growing massively every year! In fact, the industry can’t even handle the client's needs now!! 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.
POSSIBLE DEAL STRUCTURE AND RETURN ON YOUR INVESTMENT (ROI)*:
• Projected ROI of 39%
• Total purchase price: $3,960,000 (the advertised price is not an asking price; it is the *appraised price)
• Down payment: $715,000
• Current SDE (cash flow of the business): $951,261
• Amount financed: $3,245,000
• Debt service per year (annual note payment): $530,903
• SDE less debt service: $420,358
• Assume a New owner pulls $140,000 a year out of the business in wages.
• Remaining SDE (cash flow) after owner wages and paying annual debt service: $280,358; So even after paying your debt service AND taking out $140,000 in a wage, you should still have $280,358 (left over) to do with as you wish. Pay down debt early, take it out in additional wages or go to Vegas!
• Annual return of investment on your injected capital/down payment each year: 39%; 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 none will be left as part of the sale. buyer is responsible for their own working capital, which can normally be secured as part of the 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 numbers presented by the seller.
SALES/SDE(Earnings) HISTORY:
2020: $1,112,574 / $114,883
2021: $1,203,916 / $267,802
2022: $2,174,221 / $799,111
2023 (year-end): $2,322,943 / $951,889
CONTACT US Today for the NDA. We will email you the short form and contact you once it’s received.
