This non-medical In-home senior care franchise (resale) boasts a sustainable, SUPER HIGH margin. When we say high margin, we mean it (49.92% of sales are dropping to earnings)!! As we’ve been selling these locations for over 10 years, from every brand you can think of, we know a good operation does 23% to 27% of sales and earnings (SDE). And again, we believe the margin is sustainable and after a discussion with us, you’ll know why.
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.
APPRAISED PRICE*: 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 and over 200 other major banks, 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. And to be specific and accurate about 'SBA pre-qualification'... the SBA does not pre-qualify businesses; the underlying bank (the lender) that uses the SBA to help guarantee the bank's loans pre-qualifies businesses, and did so on this business.
Further, this is an industry that is highly sought after, recession-resistant, COVID-resistant and it’s GROWING massively every year! In fact, the industry can’t even handle the client's needs now!! 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 40%
• Total purchase price: $892,000 (the advertised price is not an asking price; it is the *appraised price)
• Down payment: $180,000 (20%–22% approx.)
• Current SDE (cash flow of the business): $289,003* (4-year weighted average)
• Amount financed: $712,000
• Debt service per year (annual note payment): $116,488
• SDE less debt service: $172,515
• Assume a New owner pulls $100,000 a year out of the business in wages.
• Remaining SDE (cash flow) after owner wages and paying annual debt service: $72,515; So even after paying your debt service AND taking out $100,000 in a wage, you should still have $72,515 (left over) to do with as you wish. Pay down debt early, take it out in additional wages or go to Vegas!
• 40% is Your 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 6–7%.
• 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:
2023 Sales: $602,905 ( 4-year weighted average is $572,933)
2023 SDE: $315,118
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