This is a top brand in-home senior care (non-medical) franchise (resale). This is a terrific location with consistent sales and earnings, priced extremely well, with massive potential! We're not just saying this to have you look at this ad. We're saying it because it's TRUE. We sell 10 to 18 of these locations a year, and we know all the metrics. Where this company is only dropping 14% of gross sales to earnings, it should be dropping 20%, if not more. That equates out to $271,000 that it should be making you a year, and it's currently only making the seller $188,000.
Further, the seller’s one location is massive, and if purchased from scratch in today's market, it would be the equivalent of five territories! The territories alone, if purchased today, would be about $250,000 and that's with zero sales and no infrastructure, no offices, et cetera.
You should also take a look at our “Thought Experiment” document after you finish completing the non-disclosure agreement and getting the business profile. You'll easily see what we feel this company should be worth in just the next couple of years if the margin was repaired and sales were increased modestly. I think you'll be very interested and impressed.
Please note, the franchisor requires daily operation by the owner about 30-40 hours/week and does not approve of absentee, semi-absentee (passive) ownership.
THE COMPANY:
This is a top-tier brand in the home care industry. 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 this high quality non-medical in-home care and we think when you dive into this further, you’ll agree with that assessment. There are many active clients, including Government clients, and a great roster of high-quality caregivers, as well as trained/seasoned staff.
APPRAISAL: 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, it is a solid appraisal.
POSSIBLE DEAL STRUCTURE AND RETURN ON YOUR INVESTMENT (ROI):
- Projected ROI of 36%!
- Total purchase price: $521,000 (*Appraised Price)
- Down payment: $125,000 (approx. 24% x $521,000)
- Current SDE (cash flow of the business): $190,978
- Amount financed: $396,000 ($521,000 - $125,000)
- Debt service per year (annual note payment): $61,490 (10 years at 9.50% apprx.)
- SDE less debt service: $129,488 ($190,978 - $61,490 = $129,488)
- Assume - New owner to pull $85,000 a year out of the business in wages.
- Remaining SDE (cash flow) AFTER owner wages and paying annual debt service: $44,488 ($190,978 - $85,000 - $61,490 = $44,488). So even after paying your debt service and taking out $85,000 in a wage you should still have $44,488 to do with as you wish, pay down the debt early, take it out in additional wages, or go to Vegas!
- Annual return on investment or your return on injected capital (down payment) year after year is 36%! ($44,488/$125,000 = 36%)
- 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. Clearly in the stock market you would not be working in the company you held stock in.
- This scenario does not include working capital
- **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.
SALES/SDE HISTORY:
2023 Sales/SDE: $1,381,428/$183,510
2024 Sales/SDE: $1,348,584/$199,952
2025 Sales/SDE: $1,286,304/$181,192
2026 Sales/SDE: $1,358,860/$190,978 (Projections)
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NO EXPERIENCE In the Medical Industry Is Needed. Extensive training and ongoing support provided by franchisor. Seller willing to provide training during transition.
Non-Disclosure Agreement (NDA) is required. The sale is confidential, which is why we are not publishing sensitive financial information or the name. Information provided to qualified buyers with NDA in place. Gross Revenue and Cash Flow stated by seller. All information, data, financials, valuations, appraisals, inventory, FFE/Assets/Equipment, real estate values, etc. must be verified with the seller and buyer's own professional independent advisors, CPA, etc.
