You are looking at one of The top senior care Franchise brands in the nation doing both skilled nursing & in-home care work. The location is running a serious sales/earnings margin of 42.27% and this is primarily due to Major lucrative government contracts and smart operations. As we specialize in this business model, to give some perspective, a very good operation doing this work might have a 23% to 25% margin.
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.
Buyers:
Time is of the essence…You may not want to wait on this business, as one of our recent senior care transactions was under contract in 72 hours and another prior to that in 24hours! We had one location that we didn’t even advertise, and it sold for full price and closed in 45 days! Translation….This is a Very In-Demand business model and they go fast when they are properly presented…as you see here.
Possible deal structure and return on your investment (ROI):
• Projected Return On Investment (ROI) of 39%!
• Total purchase price: $6,750,000 (Appraised Price)
• Down payment: $1,500,000 (*with bank financing, buyer must come in with $1,500,000 as their down payment)
• Current SDE (cash flow of the business): $1,589,487 (*$1,589,487 is the 3 year weighted average directly worked up out of the appraisal.)
• Amount financed: $5,250,000
• Debt service per year (annual note payment): $858,934 (10 years at 10.75% apprx.)
• SDE less debt service: $730,553
• Assume - New owner to pull $150,000 a year out of the business in wages.
• Remaining SDE (cash flow) after owner wages AND paying annual debt service: $580,553. So even After paying your debt service And taking out $150k in a wage you should still have $580,553 to do with as you wish, pay down the debt early, take it out in additional wages, go to Vegas, etc.!
• 39% Is the 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. Clearly in the stock market you would not be working in the company you held stock in.
• This scenario does Not include working capital, you will need a line of credit from a bank (most supply this as part of the loan package) or have additional funds to support growth.
• 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 advisors 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 10-20 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.
Sales/SDE History:
2020: $3,255,252 / $1,143,426
2021: $3,922,247 / $1,563,350
2022: $3,235,985 / $1,439,840
2023: $4,121,895 / $1,770,045 (projections)
Contact us for the NDA. We will contact you and email the online form shortly after your inquiry. Please be sure to check your spam folder as well. Non-Disclosure Agreement (NDA) is required. The sale is confidential.
